bankruptcy

Illustration of Disney’s proposed Character.AI bankruptcy deal and the legal questions surrounding AI chatbot technology

Disney Asked Character.AI to Go Bankrupt for a Get-Out-of-Lawsuits Card

The company, known for letting users create and chat with AI-generated characters, filed for bankruptcy protection in Delaware on October 12, 2026. The filing came after lawsuits and investigations concerning chatbot safety, particularly allegations involving minors. Character.AI says the court-supervised process is intended to maximize value and provide a chance for its platform to continue […]

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