Disney hires Character.AI staff as the startup files bankruptcy

Industry

Disney hires Character.AI staff as the startup files bankruptcy

Character.AI filed for chapter 11 bankruptcy on 12 October. Court filings reported by WIRED say Disney paid it US$5.5 million in September, plus a refundable US$2 million deposit, and hired most of its staff, including former CEO Karandeep Anand. Disney hopes to win an auction for a licence to much of its code, which needs court approval. Character.AI would remain responsible for its lawsuits and a multistate investigation involving 46 states and territories.

Why it matters: If you rely on a smaller AI supplier, ask what happens to your service and data if it is sold or goes bankrupt. This deal is US-based and not yet final.

Source: Wired · Also reported by TechCrunch, Ars Technica

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