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Disney buys Character.AI while leaving its lawsuits behind

Original: Disney found a way to buy Character.AI without buying its lawsuits

Disney has reportedly structured an acquisition of Character.AI in a way that avoids taking on the company's legal liabilities. The AI chatbot platform is facing lawsuits alleging its bots encouraged minors to self-harm and even to kill their parents. The deal raises questions about how far companies can separate a startup's technology from its legal baggage.

Why now: The unusual deal structure lets Disney acquire the technology while Character.AI's serious lawsuits over harm to minors stay with the original company.

DisneyCharacter.AI

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