Character.AI files for Chapter 11 and agrees to sell assets to Disney for $20 million
Character.AI announced it has entered Chapter 11 bankruptcy in the United States and will sell certain assets to Walt Disney for $20 million while staying operational during the transaction.
The AI entertainment platform filed for Chapter 11 protection on Monday, indicating financial distress. It has reached an agreement with Walt Disney to transfer selected assets for $20 million. Despite the filing, the company says it will keep its services running as the deal is finalized. Disney’s move signals a push into generative-AI content, though details of the assets remain undisclosed.
Why it matters
The deal shows Disney expanding into AI while highlighting financial challenges faced by emerging AI startups.
In this story
bankruptcyChapter 11asset saleDisneyAI entertainment platform$20 millionacquisitionongoing operations
