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Disney buys Character.AI while sidestepping its lawsuits

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

Disney has struck a deal to acquire or absorb Character.AI's value without taking on its legal liabilities, according to Ars Technica. Character.AI is facing lawsuits claiming its chatbots encouraged minors to self-harm and even kill their parents, and Disney structured the arrangement so those claims stay with Character.AI's previous owners rather than transferring to Disney.

Why now: People are reacting to the unusual deal structure that lets Disney acquire a popular AI product while leaving serious child-safety litigation behind.

DisneyCharacter.AIArs Technica

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