Character.AI, a company that develops artificial intelligence-based chatbots, has announced the voluntary start of bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code. The move entails a court-supervised sale of the business.
The company explained that the cause was legal, regulatory and operational difficulties that arose over the past year. After reviewing possible options, the board of directors decided that a court-supervised sale process would preserve the value of the business to the greatest extent possible in the interests of stakeholders.
Character.AI hopes to find a buyer that will continue operating the platform. If no suitable offer is received, the service will be shut down.
At the time of the announcement, the platform was operating as usual. All features remain available to users, and the terms of paid subscriptions and billing procedures are not changing for now.