💰 AI Pioneer Character AI Goes Bankrupt

Character AI, the developer of one of the first and most popular services for chatting with AI companions, has filed for bankruptcy.

For now, the platform will keep running, while the company will put almost all of its assets up for sale. If the new owner doesn't want to keep the service, it will be shut down.

🔍 A Buyer Is Already In Sight

Before the filing, Disney's attention was caught by Character AI's assets, where the startup's former CEO, Karandeep Anand, had moved a month earlier. Disney signed an agreement with the startup and will set the opening bid at the auction.

The studio is ready to offer $20 million for a non-exclusive perpetual license to Character AI's technology.

📌 Pressure From All Sides

Character AI was founded in 2021 by former Google employees Noam Shazeer (co-author of the transformer architecture) and Daniel De Freitas. In 2023, the company reached a $1 billion valuation and raised $150 million.

In August 2024, Google lure…

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