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Disney Offers $20M For Character.AI Assets As Startup Files For Bankruptcy
Deadline • • business
Key Points:
- Character.AI, a startup that enables users to create AI-generated avatars, has filed for Chapter 11 bankruptcy in Delaware, aiming to facilitate a value-maximizing sale of its assets while continuing platform operations.
- Disney, which recently hired Character.AI’s former CEO Karandeep Anand as its CTO, plans to acquire select intellectual property and company claims through a $20 million agreement, acting as the "stalking-horse bidder" subject to higher offers.
- The move aligns with Disney CEO Josh D’Amaro’s focus on enhancing the company’s technology and AI capabilities, following previous attempts by Disney to engage with AI ventures such as a shelved $1 billion investment in OpenAI.
- Character.AI intends to complete the sale process by late November or early December, with CEO Colin Adams emphasizing the priority of maintaining a safe and engaging user experience during bankruptcy proceedings.
