Walt Disney has submitted an opening bid of $20 million for a non-exclusive license to certain intellectual property and claims, though the deal does not include the app itself. Disney hired Character.AI's former CEO, Karandeep Anand, as its CTO last month. The bankruptcy follows a $2.7 billion licensing and talent deal with Google two years ago, which transitioned the founders to the search giant while leaving legal liabilities with the startup.
Wednesday, October 21, 2026
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Character.AI Files for Bankruptcy Over Teen Suicide Lawsuits
Business7 days ago
Court filings from the creator of an AI companion app list liabilities of up to $100 million and a risk that the platform will be shut down if no suitable buyer is found. Character.AI filed for Chapter 11 bankruptcy on Monday, citing operating costs and lawsuits alleging its chatbots contributed to suicides and self-harm among teenage users. The company's recent financial disclosures estimate both its assets and liabilities to be between $50 million and $100 million.
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