Character.ai files for bankruptcy following lawsuits over teen suicides

Character.ai, the AI chatbot startup sued over claims it contributed to teen suicides, has filed for Chapter 11 bankruptcy and plans a court-supervised sale.

• Character.ai filed for Chapter 11 bankruptcy, listing assets and liabilities of between $50 million and $100 million.
• Disney agreed to pay $20 million for some of the company's intellectual property and to provide transition services.
• The company agreed to settle five lawsuits this year, including one alleging its platform was responsible for the suicide of 14-year-old Sewell Setzer III.
• CEO Colin Adams said the sale process should close by late November or early December, with the platform wound down if no buyer emerges.