Character.AI Files for Bankruptcy as Disney Bids $20 Million—And Users Get Grief Resources
60-second summary
Character.AI files for Chapter 11 bankruptcy, placing the former $1 billion‑valued chatbot on the market as a Delaware court auction begins, with Disney offering a $20 million bid while the company rolls out new AI models and grief‑support resources for users; the sale’s outcome could reshape AI‑driven conversational services and influence investor confidence in emerging chatbot startups.
The chatbot app once valued at $1 billion is up for sale in a Delaware court, two weeks after launching new models. If nobody buys it, it shuts down.