Character.AI files for Chapter 11 bankruptcy
Character.AI, the chatbot startup, filed for Chapter 11 bankruptcy, and The Verge reports it is selling some assets to Disney.
Character.AI has filed for Chapter 11 bankruptcy, according to CNBC and The Verge. CNBC says the filings were made Monday in the Delaware District bankruptcy court.
In the filings, the company said the platform became "costly to develop and grow," CNBC reports. CNBC's headline also cites litigation as a reason for the filing.
The Verge reports that Disney is buying some of the company's assets. CNBC's excerpt did not mention a Disney deal.
Character.AI builds online bots that users can chat or roleplay with. The Verge says it has faced growing scrutiny and lawsuits over the safety of its chatbots.
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- The VergeCharacter.AI files for bankruptcyTue, Oct 13, 6:32 AM EDT
- CNBCAI companion startup Character.ai files for Chapter 11 bankruptcy, citing costs and litigationTue, Oct 13, 11:16 AM EDT
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