Just 5 years in, interactive chatbot platform Character.AI files for bankruptcy
Key points
- Character.AI filed for Chapter 11 after lawsuits and struggles to scale, reporting assets and liabilities of $50 million to $100 million.
- Disney agreed to buy some assets for $20 million plus a non-exclusive perpetual license to its technology, per the report.
- The sale is expected to close in late November or early December; no bid or buyer for the assets had been secured yet.
- CEO Colin Adams said the platform will be wound down if no actionable bid emerges, while operations continue during the sale.
Why it matters for marketers: Marketers relying on Character.AI audiences or integrations should plan for possible platform shutdown and check alternative channels before late November.