AI chatbot firm Character.AI seeks Chapter 11 protection
Character.AI, an artificial intelligence chat startup, has filed for bankruptcy after facing lawsuits claiming its app contributed to teen mental health problems and suicides. Part of the company will be sold to Disney for $20 million.
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What happened
Character.AI, an artificial intelligence chat startup, has filed for Chapter 11 bankruptcy. It has faced lawsuits alleging its app contributed to mental health issues and suicides among teens. Part of the company will go to Disney in a $20 million asset sale.
Why it matters
The lawsuits center on claims that the app contributed to the deaths of minors, and the company's revenue struggles added to its financial trouble.
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