Character.AI files for bankruptcy as Disney bids US$20m

Industry

Character.AI files for bankruptcy as Disney bids US$20m

Character.AI, the AI companion chatbot app, has filed for Chapter 11 bankruptcy in Delaware, blaming high development costs plus legal and regulatory pressure. Disney has made an opening bid of US$20 million for a non-exclusive, perpetual licence to some of its technology. The app stays online during the sale, which should wrap up by late November or early December, and it could be wound down if no buyer emerges. Its privacy policy allows user information, including chat logs, to be transferred in an asset sale.

Why it matters: AI start-ups can fold fast. Before you rely on a small AI vendor, check how you'd export your data, and what happens to it if they're sold.

Source: Ars Technica · Also reported by CNBC, Engadget

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