AIReuters1h ago
Character.AI files for Chapter 11 bankruptcy in the US, agrees
Character.AI files for Chapter 11 bankruptcy in the US, agrees to sell some assets to Disney for $20M, and plans to keep operating as it completes the sale
TL;DRCharacter.AI filed for bankruptcy but Disney bought some assets for $20M and operations continue.
Why it matters: Shows AI startups struggle to monetize; Disney's selective acquisition signals which AI capabilities have real value.
Character.AI said on Monday it had filed for Chapter 11 bankruptcy in the US and agreed to sell some of its assets to Walt Disney (DIS.N) for $20 million.
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