GoKawiilDisney hires most of Character.AI staff via bankruptcy-linked deal, sidesteps lawsuits
Character.AI filed for bankruptcy this week in a move court filings show was structured to let Disney hire the bulk of its staff, including former CEO Karandeep Anand, and gain access to much of its technology. The remaining shell of Character.AI retains responsibility for ongoing lawsuits and regulatory investigations into the safety of its chatbots. Character.AI's new CEO said the bankruptcy aimed to reach a 'consensual resolution' with injury claimants and investigating states while maximizing value for shareholders.