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Character.AI files for bankruptcy

Vivid close-up of code on a computer screen showcasing programming details.
Illustrative photo.Photo by Godfrey Atima on Pexels

What happened

Character.AI, one of the first breakout startups of the generative AI boom, has filed for bankruptcy and is selling some of its assets to Disney. The company, which builds various online bots for users to chat or roleplay with, has faced mounting scrutiny and lawsuits over the safety of its chatbots , but has continued releasing updates and products in recent months.

Sources & evidence