Character.ai has filed for Chapter 11 bankruptcy protection as it moves to sell assets to Disney

Controversial chatbot platform Character.ai is seeking Chapter 11 bankruptcy protection in the wake of mounting legal challenges and runaway operating costs, the four-year-old startup said in a surprise announcement on Monday. The move comes as the Menlo Park, California, company has faced a number of lawsuits in recent years, including some that say its AI companions have encouraged users harm or kill themselves. In its announcement, Character.ai said it has reached an agreement with Disn...