Character. AI files Chapter 11 as founders seek court supervised sale
Character.AI, the chatbot company started by ex-Googlers Noam Shazeer and Daniel de Freitas, has filed for bankruptcy to try to keep things afloat.
It kicked off a Chapter 11 process on October 12, hoping a court-supervised sale will help it stick around.
Launched in late 2021, Character. AI made waves with its AI bots that chat with users.
Character. AI safety changes spark Disney talks
Things got tough after lawsuits claimed the chatbots caused harm, including one tragic case tied to a teen's suicide.
The company added safety features but ended up making the platform less fun for users.
Now, with debts between $50 million and $100 million, Character. AI is looking to sell some assets to Disney for $20 million.
If it can't find a buyer to save the platform, there's a real chance it could shut down entirely.