Character.AI files for bankruptcy, sells assets to Disney

character.ai, a generative ai chatbot startup, filed for chapter 11 bankruptcy protection in the us to facilitate the sale of its assets to disney. the company listed estimated liabilities between $50 million and $100 million. disney will pay $20 million for certain assets and provide transition support using former character.ai employees. disney also hired former character.ai ceo karandeep anand as chief technology officer and expects some technical team members to join. character.ai will continue operating its services, including paid subscriptions, during the sale process.