GoKawiilCharacter.AI files for Chapter 11 bankruptcy, sells assets to Disney for $20 million
Character.AI, the AI chatbot startup that lets users create and converse with custom characters, has filed for Chapter 11 bankruptcy after facing lawsuits and operational strain. CEO Colin Adams said the company has assets and liabilities between $50 million and $100 million, and it will sell some assets plus a non-exclusive perpetual technology license to Disney for $20 million. Adams said no buyer has yet emerged for the rest of the company, and the platform will be wound down if a viable bid doesn't materialize.