Just 5 years in, interactive chatbot platform Character.AI files for bankruptcy
Character.AI says it may wind down if its bankruptcy sale does not produce a buyer.
The company filed for Chapter 11 with assets and liabilities listed between $50 million and $100 million. It has agreed to sell some assets to Disney for $20 million, but says there is not yet a bid for the broader platform. CEO Colin Adams said Character.AI will keep operating during the process, expected to close in late November or early December. The filing follows lawsuits, child-safety scrutiny, a ban on minors, and a pivot away from foundation-model training after Google licensed its models. TechCrunch AI's note
The company filed for Chapter 11 with assets and liabilities listed between $50 million and $100 million. It has agreed to sell some assets to Disney for $20 million, but says there is not yet a bid for the broader platform. CEO Colin Adams said Character.AI will keep operating during the process, expected to close in late November or early December. The filing follows lawsuits, child-safety scrutiny, a ban on minors, and a pivot away from foundation-model training after Google licensed its models. TechCrunch AI's note
score 6