Character.AI files for Chapter 11 bankruptcy five years after establishment; sells part of its assets to Disney for $20 million

Character.AI has filed for Chapter 11 bankruptcy five years after its establishment. Some assets were sold to Disney for $20 million. Court documents show its assets and liabilities are between $50 million and $100 million, and it has agreed to sell some assets and grant Disney a non-exclusive, perpetual license to its technology for $20 million. The sale is expected to be completed by late November or early December. The platform will continue to operate during this period, but there are currently no competing bidders; if no buyer emerges, the platform will shut down. Previously, the company faced difficulties including lawsuits from minor users and investigations in Texas, and had attempted transformations such as AI video generation, social feeds, and micro-dramas without success.