Character.AI files for bankruptcy

Character.AI, one of the early breakout startups of the generative AI boom, has filed for Chapter 11 bankruptcy protection in the United States. The firm is selling some of its assets to Disney amid mounting scrutiny and lawsuits over the safety of its chatbots. Despite the legal challenges, it has kept releasing updates and new products in recent months.

Summary written by Kernelia from the original article by The Verge — AI. The story and its rights belong to its author.