AI company has faced multiple lawsuits from families who claimed their teenage children died by suicide or harmed themselves after using its platform.

Character.ai said it has filed for Chapter 11 bankruptcy protection, with its chief executive attributing the chatbot provider’s financial problems to “significant legal, regulatory and operational headwinds.”

The company said it will continue operating as it seeks to sell its business, and added that The Walt Disney Co. has agreed to pay $20 million for a non-exclusive, perpetual license to Character.ai’s intellectual property.

  • mrmaplebar@fedia.io
    70·
    15 days ago

    One would think that it would be pretty easy to turn a business model based on theft and exploitation into something profitable, but the AI industry proves that you can rip people off and go bankrupt at the same time.

    I guess they forgot the part where they go public and hand gullible retail investors the bag.