Character.AI, which lets users create custom chatbots for immersive roleplaying, has filed for Chapter 11 bankruptcy following a string of legal challenges and the loss of top talent.
Character.AI cited high costs and potential legal liabilities in a filing detailing Disney's $20 million bid for some of its assets.
Disney is offering $20 million to license Character.AI’s software for training and running AI models. The bancrupt company's chatbot service still needs a buyer to stay online.
The entertainment giant hopes to get trust and safety tech, among other IP, from a startup whose chatbots dozens of states allege encouraged minors to self-harm and kill their parents.
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