Character.AI Files for Bankruptcy, Sells Assets to Disney for $20 Million
Character.AI has filed for bankruptcy and agreed to sell certain assets to Disney for approximately $20 million, according to reports. The acquisition is expected to be finalized by 2026. Character.AI, which gained popularity for its conversational AI characters, becomes the latest in a series of AI startups to face financial difficulties in a challenging market environment. The deal with Disney suggests a strategic interest in the company's technology or intellectual property, potentially for applications in entertainment or interactive experiences.