320

Character.ai said it has filed for Chapter 11 bankruptcy protection, with its chief executive attributing the chatbot provider's financial problems to "significant legal, regulatory and operational headwinds."

The company said it will continue operating as it seeks to sell its business, and added that The Walt Disney Co. has agreed to pay $20 million for a non-exclusive, perpetual license to Character.ai's intellectual property.

you are viewing a single comment's thread
view the rest of the comments
[-] SailorFuzz@lemmy.world 59 points 4 days ago

And all that data they accumulated during their run will be sold off to the highest bidder. Some new company who you'll have no idea what they'll do with that data...

You know, all that usage data that you agreed to give Character.ai? All the records of your conversations, your profile, interests, personal secrets? That they said they dont sell to third parties?

Well, that was then, this is now. The liquidator dont care about your agreed on ToS. That's not a real contract.

this post was submitted on 13 Oct 2026
320 points (100.0% liked)

Fuck AI

8476 readers
725 users here now

"We did it, Patrick! We made a technological breakthrough!"

A place for all those who loathe AI to discuss things, post articles, and ridicule the AI hype. Proud supporter of working people. And proud booer of SXSW 2024.

AI, in this case, refers to LLMs, GPT technology, and anything listed as "AI" meant to increase market valuations.

founded 2 years ago
MODERATORS