Character.AI Files for Chapter 11 Bankruptcy, Agrees to Sell Some Assets to Disney for $20M

On Oct. 12 local time, Character.AI announced that it had filed for Chapter 11 bankruptcy reorganization in the United States and agreed to sell some assets to The Walt Disney Company for $20 million. Court filings show estimated assets and liabilities ranging from $50 million to $100 million.

Character.AI is a company that provides AI-powered role-playing chat services.