Character.AI Officially Declares Bankruptcy; Assets to Be Transferred to Disney

The Character.AI AI chatbot service will continue operating, but if the buyer of the company does not agree to continue it, the service will be shut down permanently. The post Character.AI Officially Declares Bankruptcy; Assets to Be Transferred to Disney appeared first on Safir Arjan.

The AI chatbot service will continue, but if the buyer of the collection does not agree to its continuation, it will be closed forever.

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Character Technologies, the American owner of the artificial intelligence platform, has officially filed for bankruptcy and filed for Chapter 11 protection. At the same time, this startup has agreed to sell part of its assets worth 20 million dollars to Walt Disney Company.

According to the statement of this collection, the official process of handing over the assets, including the license of part of the intellectual property, has started, and the company is receiving the approval of the court to determine the rules of the auction. Under the proposed mechanism, Disney will play the role of "advance bidder" (bankruptcy law term for a buyer who sets the minimum base price of the auction by submitting the first bid). This mechanism stabilizes the base price of the auction while giving other potential buyers the opportunity to make higher bids. The process is expected to be completed by late November or early December 2026.

According to court filings, Character Technologies estimates its assets and liabilities to be between $50 million and $100 million.

"Colin Adams", CEO, says about this action:

"After a comprehensive evaluation of all available options, the board of directors concluded that the execution of the sale process under the supervision of the court provides the best platform to preserve the maximum value of shareholders and beneficiaries."

It has also announced that it will continue its chatbot platform business and service activities with minimal disruption as the auction and asset sale proceeds. However, if during this purchase process it is not found that the applicant is interested in the continuation of this platform, its services will be completely shut down.

Over the past months, the platform has provided its users with features such as turning a book into an interactive role-playing experience, and it has also come with many concerns. Recently, a report said that chatbots developed by in some cases have encouraged users to self-mutilate, starve themselves, and commit suicide.

My professional career in the world of technology goes back almost 10 years; The path that started with hardware, continued with software, and now continues as a technology reporter in Sefir Arjan. I am Javad and more than three decades have passed and in addition to the world of technology, I love movies and cinema, classic rock music and Real Madrid.