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Character.ai Maker Files for Chapter 11 Bankruptcy

The Wall Street JournalView source article

Part of story

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

AI chatbot company Character.AI has filed for bankruptcy protection and agreed to sell some of its assets for $20 million, marking a significant collapse for the once-prominent conversational AI startup.

Oct 13, 2026·8 sourcesAI assistants & chatbotsAI startupsVenture capital fundingBusiness & enterprise AI
Character.AI files for bankruptcy, agrees to sell assets for $20 million
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Other sources for this story

Forbes

Character.ai Files For Bankruptcy—Disney Bids $20 Million After Copyright Dispute

Reuters

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

The Decoder

Character.ai will shut down if no buyer emerges, capping a fall from $2.7 billion Google deal to bankruptcy

The Verge

Character.AI files for bankruptcy

Business Insider

Troubled chatbot startup Character.AI files for bankruptcy — and Disney is first in line for key assets

Analytics India Magazine

Troubled AI Chatbot App Character.AI Files for Bankruptcy Amid Legal Scrutiny

Techcrunch

Just 5 years in, interactive chatbot platform Character.AI files for bankruptcy