GoKawiilCharacter.ai files for Chapter 11 bankruptcy amid lawsuits and rising costs
AI companion app maker Character.ai filed for Chapter 11 bankruptcy protection in Delaware, saying the platform had become too expensive to develop while facing litigation and regulatory pressure. CEO Colin Adams said a court-supervised sale offers the best chance to maximize value for stakeholders, and Disney has agreed to act as a stalking horse bidder, offering $20 million to license some of the company's intellectual property.