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

The controversial companion chatbot platform cites legal challenges, regulatory obstacles, and runaway operating costs.

[Photo: Mojahid Mottakin/Adobe Stock]

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........

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