❗️Character AI faces bankruptcy after once reaching a $1 billion valuation

Character AI has reportedly filed for Chapter 11 bankruptcy, with its chatbot platform potentially facing shutdown if no buyer agrees to keep it running.

The situation is striking given the company’s history. Just two years ago, Google struck a $2.7 billion deal involving licensing and talent. Now, Disney is reportedly bidding $20 million for certain intellectual property rights and claims, despite having sent Character AI a cease-and-desist letter last year.

Character AI’s former CEO reportedly became Disney’s CTO just 10 days earlier.

A company once valued at $1 billion could now see parts of its intellectual property sold off, while the future of its AI chatbot service remains uncertain.

@aitopics