Character.AI files for bankruptcy, agrees to sell some assets to Disney for $20 million

Character.AI has officially filed for bankruptcy following recent financial challenges. As part of this legal process, the company has reached a formal agreement to sell a portion of its assets to Disney. The total value of this asset sale is reported to be $20 million. This strategic move comes as Character.AI navigates its bankruptcy proceedings, transferring specific holdings to the entertainment giant to manage its current financial obligations and restructure its remaining operations effectively.