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Character.AI files for bankruptcy, Disney to buy assets
Original: character ai
AI companion startup Character.AI has filed for Chapter 11 bankruptcy protection, with reports citing high operating costs and ongoing litigation as key pressures. Reuters reports that Disney has agreed to buy some of the company's assets for $20 million as part of the proceedings. The filing marks a sharp downfall for a startup once among the most prominent names in consumer AI chatbots.
Why now: News broke this week that Character.AI filed for bankruptcy and is selling assets to Disney, prompting widespread coverage and discussion.
Evidence
- Character.AI files for bankruptcy, to sell some assets to Disney for $20 million · Reuters
- AI companion startup Character.ai files for Chapter 11 bankruptcy, citing costs and litigation · CNBC
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