Disney seeks assets from controversial AI companion start-up

Disney is bidding $20 million to license intellectual property from the artificial-intelligence companion start-up Character.AI, which is in bankruptcy proceedings and faces a lawsuit from the state of Kentucky alleging its chatbots encouraged users to self-harm.

Disney seeks assets from controversial AI companion start-up

TL;DR

  • Disney is bidding $20 million for intellectual property from Character.AI.
  • Character.AI is in bankruptcy proceedings and selling all assets.
  • The company faces a lawsuit from Kentucky alleging its chatbots encouraged self-harm.
  • Disney had previously alleged unauthorized use of its characters by Character.AI.
  • Character.AI has settled two previous lawsuits related to teen suicides.
  • The Character.AI platform remains operational.