Character.ai files for bankruptcy after Disney’s $20 million licensing deal
Character.ai, once valued at $1 billion, has filed for Chapter 11 bankruptcy amid legal challenges over teen safety and copyright.
The company says that before filing, it struck a deal for Disney to pay $20 million to license certain intellectual property.
Character.ai plans a court-supervised sale by the end of the year.
Its platform will keep running during the process but will be wound down if no bid emerges that keeps it running.
