Character Technologies, a US-based company behind the generative AI platform Character.AI, said on October 12 it had filed for Chapter 11 bankruptcy in the US and agreed to sell some assets to Disney for US$20 million.

The company is seeking court approval for auction rules that would make Disney the stalking horse bidder, setting a baseline offer for other bidders.

Court filings listed estimated assets of US$50 million to US$100 million and estimated liabilities in the same range.

Character.AI said it intends to keep the platform running during the sale process and will wind it down if no buyer is willing to continue operations.

The company is led by CEO Colin Adams and was previously backed by Andreessen Horowitz.

Character.AI also has a privacy policy, though the material reviewed did not show specific clauses on data transfers during bankruptcy or a sale.

🔗 Source: Reuters