Character.AI, one of the first breakout startups of the generative AI boom, has filed for bankruptcy and is selling some of its assets to Disney. Character.AI filed for Chapter 11 to pursue a sale, while Disney offered $20 million for a licence to certain assets. Key points and original sources are listed below.

• Character.AI, one of the first breakout startups of the generative AI boom, has filed for bankruptcy and is selling some of its assets to Disney. The company, which builds various online bots for users to chat or roleplay with, has faced mounting scrutiny and...S1

• Character.AI filed for Chapter 11 to pursue a sale, while Disney offered $20 million for a licence to certain assets.S2