Character.AI Files for Bankruptcy

Character.AI has filed for Chapter 11 bankruptcy protection in the United States to facilitate a court-supervised sale of its assets. The company reported estimated assets and liabilities ranging between $50 million and $100 million each.

Disney has agreed to serve as the stalking-horse bidder with a $20 million offer for a non-exclusive, perpetual license to certain intellectual property. The sale process is expected to conclude by late November or early December.