CNBC reported on October 13 that AI companion startup Character.AI filed for Chapter 11 bankruptcy, citing costs and litigation, in a story whose address also references a Disney bid. The full article was not accessible to us, so we cannot report the terms of any bid or the court details.
The company has been the subject of child-safety scrutiny; Texas's attorney general opened an investigation into it and 14 other platforms in 2024. The filing comes the same week that eight states sued OpenAI over ChatGPT's effects on children. Readers should consult CNBC's report for details.
Source: CNBC