Character AI bankruptcy puts its platform up for sale as Disney agrees to a $20M deal

Character.AI’s bankruptcy filing comes after the chatbot platform reached millions of users but struggled to sustain its business. Five years after its founding, the company has entered Chapter 11 and is pursuing a court-supervised sale while keeping its service online. Key takeaways Character.AI’s court filing lists assets and liabilities of $50 million to $100 million. Disney’s $20 million agreement covers assets and a perpetual technology license. The chatbot service remains online during the sale process. The platform reached 20 million monthly active users in October 2024. According to TechCrunch , the filing follows lawsuits and difficulties scaling the popular platform.

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