Character.AI goes bankrupt after Big Tech’s “license and hire” playbook leaves the shell behind

Roughly one year after Character.AI’s leaders and technology were absorbed by Google and then Disney, the AI companion firm has now filed for Chapter 11 bankruptcy, with the courts now set to sell the shell of the company that remains. The Chapter 11 bankruptcy proceedings that Character Technologies Inc., which does business as Character.AI, filed in the US Bankruptcy Court for the District of Delaware on Monday, October 12, will allow it to reorganize or sell assets while it continues to operate under court supervision.

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