Disney Offers $20 Million for Character.ai Intellectual Property Amid Bankruptcy

After facing lawsuits over allegations that its chatbots contributed to teen suicides and exposed minors to harmful content, Character.ai has filed for bankruptcy, with Disney offering $20 million for some of its intellectual property.Character.ai, whose chatbots have drawn scrutiny over their effects on young users, is seeking a court-supervised sale by the end of the year to keep the platform operating. As CNN reports, the company filed for Chapter 11 bankruptcy protection, reporting between $50 million and $100 million in assets, and says the platform could be shut down if a sale falls through.Disney has reportedly agreed to pay $20 million for some of Character.ai s intellectual property. Disney would also provide transition services through former employees it has hired, allowing the chatbot platform to remain operational during the bankruptcy proceedings.According to CNN, the startup reached a $1 billion valuation after raising $150 million in 2023, but it has since faced mountin