Character.ai files for Chapter 11 bankruptcy protection, seeks buyer

Character.ai has filed for Chapter 11 bankruptcy protection while it searches for a buyer. The company was losing $8 million a month and estimates assets and liabilities of $50–100 million. Disney received a non-exclusive technology license for $20 million as part of the proceedings.

• Character.ai filed for Chapter 11 bankruptcy protection and is seeking a buyer
• The company was losing $8 million a month with 20 million active users
• Assets and liabilities estimated at $50–100 million against nearly $200 million raised
• Disney got a technology license for $20 million in a stalking-horse deal