Reports say Character AI has filed for Chapter 11 bankruptcy
Reports say Character AI has sought Chapter 11 bankruptcy protection, leaving the chatbot platform’s future dependent on a possible buyer.
Published reports say Character AI has sought protection under Chapter 11 of the US Bankruptcy Code, putting the future of its chatbot platform in question.
According to those reports, the service could face a shutdown if no buyer agrees to keep it operating. The development contrasts sharply with the company’s recent history: Character AI was valued at about billion roughly two years ago.
Google previously reached a .7 billion deal involving licensing and talent connected with the company. Disney is now reportedly offering 0 million for certain intellectual-property rights and claims, after sending Character AI a cease-and-desist letter last year.
The reports also say Character AI’s former CEO became Disney’s chief technology officer just 10 days earlier. The final details of the case, the bids and the chatbot’s future remain uncertain.
