Disney found a way to buy Character.AI without buying its lawsuits
Character.AI faces claims its bots encouraged minors to self-harm and kill their parents.
via Ars TechnicaReported by 2 outlets
Disney hires Character.AI talent and moves to secure its technology through bankruptcy restructuring
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AI summary of the reporting below · Updated · How we work
Character.AI has filed for bankruptcy as part of a transaction enabling Disney to hire the majority of the startup's workforce, including its former chief executive Karandeep Anand. Under the arrangement outlined in court filings, the entertainment giant also stands to acquire most of the company's technology and intellectual property, including trust and safety tools. [1][2]
The structured deal is designed to shield Disney from Character.AI's mounting liabilities. The remaining startup entity will retain responsibility for ongoing legal battles, which include multiple private personal injury lawsuits over chatbot safety and investigations by dozens of states alleging the platform encouraged minors to engage in self-harm and violence against their parents. [1][2]
Character.AI's newly appointed chief executive stated in a bankruptcy declaration that the filing seeks to achieve a consensual resolution with claimants and state regulators while maximizing remaining asset value for shareholders. [1]
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2 outlets
Read at Ars Technica
Disney Asked Character.AI to Go Bankrupt for a Get-Out-of-Lawsuits Card
The entertainment giant hopes to get trust and safety tech, among other IP, from a startup whose chatbots dozens of states allege encouraged minors to self-harm and kill their parents.
via WIRED