Character.AI Files for Bankruptcy: Disney Buys Assets for $20 Million as an AI Star Startup Falls
Character.AI, one of the first breakout startups of the generative AI boom, has filed for Chapter 11 bankruptcy and named Disney as lead bidder for its assets in a $20 million deal. With liabilities estimated between $50 million and $100 million, the platform could be wound down if no suitable buyer emerges by early December. The collapse lays bare the harsh economics of the AI companion chatbot market.





