Character.AI Bankrupt, Selling Assets to Disney

AI STARTUP BANKRUPTCY October 13, 2026 The Verge

Character.AI, an early generative AI startup known for its chatbots and roleplay bots, has filed for bankruptcy and is selling some of its assets to Disney. The company has faced mounting scrutiny and lawsuits over chatbot safety, though it continued releasing updates and new products in recent months leading up to the filing.

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