AI company has faced multiple lawsuits from families who claimed their teenage children died by suicide or harmed themselves after using its platform.

Character.ai said it has filed for Chapter 11 bankruptcy protection, with its chief executive attributing the chatbot provider’s financial problems to “significant legal, regulatory and operational headwinds.”

The company said it will continue operating as it seeks to sell its business, and added that The Walt Disney Co. has agreed to pay $20 million for a non-exclusive, perpetual license to Character.ai’s intellectual property.

  • SailorFuzz@lemmy.worldEnglish
    0·
    4 days ago

    And all that data they accumulated during their run will be sold off to the highest bidder. Some new company who you’ll have no idea what they’ll do with that data…

    You know, all that usage data that you agreed to give Character.ai? All the records of your conversations, your profile, interests, personal secrets? That they said they dont sell to third parties?

    Well, that was then, this is now. The liquidator dont care about your agreed on ToS. That’s not a real contract.