Disney Offers $20 Million For Character.AI Assets As Startup Files For Bankruptcy

Character.AI has filed for Chapter 11 bankruptcy protection and plans to sell substantially all of its assets, with Disney offering $20 million as a "stalking-horse bidder" for select intellectual property and company claims. However, the company said Disney's bid is subject to "higher or better offers." Deadline reports: The company, which allows users to create and interact with AI-generated avatars, said it made the filing in U.S. Bankruptcy Court for the District of Delaware. It said it hopes the process will allow it to "facilitate a value-maximizing sale of all or substantially all" of its assets. The Character.AI platform will continue to operate during the bankruptcy.