Chatbot platform Character.AI said Monday it has filed for bankruptcy in the U.S. and has agreed to sell some assets for $20 million to Walt Disney.
\n\nThe generative AI platform has faced mounting legal challenges over its chatbots. Earlier this year, Character.AI and Alphabet’s Google settled a lawsuit by the mother of a 14-year-old Florida boy who killed himself after the startup’s chatbot allegedly encouraged him to do so.
\n\nKentucky has sued the company, saying its chatbots encouraged users to cut, starve or kill themselves, while Pennsylvania filed a lawsuit alleging its chatbots posed as doctors.
\n\nAccording to Character.AI’s proposal, Disney will be a “stalking-horse” bidder — an initial prospective buyer — for a nonexclusive perpetual license to some intellectual property. Other bidders can top Disney’s offer.
\n\nCharacter.AI expects to close the sale of all its assets by late November or early December. Character Technologies, its U.S.-based owner, listed estimated assets and liabilities of $50 million to $100 million, according to a court filing.
\n\nDisney will help the platform in the transition, using staff it has hired from Character.AI. The platform’s services would continue meanwhile, but would be shut down if it can’t find a buyer, the company said.
\n\nTwo…
Original source: https://www.nbcnews.com/business