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.
The Walt Disney Co. has agreed to pay $20 million for a non-exclusive, perpetual license to Character.ai’s intellectual property.
What is Character.ai’s intellectual property, exactly?
Who knows but can we afford to miss out?
Woah. Honestly, character AI was I think the second most profitable thing in AI after enterprise AI. Like, horny and lonely folks are the most vulnerable people and are heavily exploited ones too. If you cannot make that a viable buisness, this is really a bad signal for all AI buisnesses.
So it begins…
:)
reminder that the people that constantly use these sites would probably shame you for being in like an rp server
Reopens as “characters . ai”
Pop that bubble! 😍
Going to say right now that this should not have existed in the first place, that way I’m not mincing words.
I wonder if this will lead to noticeably higher suicide rates among users of the app? I remember when they just slightly changed how the characters talk to users and people acted like their grandma got shot.
I think that was chatgpt 3.1? But id imagine yes. Unfortunately these bloodsuckers are making money off of lonelyness, and when the feed runs dry theyre smacked with emotion which many cannot handle.
Maybe when they turned off GPT 4o.
Oh yes that was what it was. Pardon me, I actively avoid AI dev news like the plague.
Now now… this isn’t Replika.

Trying to escape from actually being held accountable for the harms they’ve caused. Scum is as scum does.
Ah, so happy for them, filing for bankruptcy is such a good look for them! I can’t wait to see a lot of the other services start to domino fall. Go AI, go broke as all the knowledgeable people say. ROFLMAO
Oh no, who will take advantage of isolated and lonely young people now!?!?
let it be the first of many
well this was definitely one of the weirder services out there. and disney’s paying 20 million for it? that’s the real headline lmao can’t wait to find out how they manage to resell it to our kids. horrifying
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.









