Character.AI Files for Bankruptcy Reorganization, Agrees to Sell Partial Assets to Disney

Golden Finance reports that on October 12 local time, Character.AI announced it has filed for bankruptcy reorganization under Chapter 11 of the U.S. Bankruptcy Code and agreed to sell partial assets to Walt Disney for $20 million. Court documents show that Character.AI's estimated assets and liabilities are both between $50 million and $100 million. It is understood that Character.AI is a virtual character interaction and chatbot platform powered by large language models. The platform hosts millions of AI characters created by users or officially, covering anime/game characters, historical figures, original characters, protagonists of fictional stories, and more.