First Bankruptcy Filing by Major AI startup
character.ai officially filed for voluntary Chapter 11 bankruptcy in the U.S. to pursue a court supervised sale of its assets amid mounting legal liabilities and operational headwinds.
As part of the process, The Walt Disney Company stepped in as an initial stalking horse bidder with a $20 million offer for select IP assets.
The company had a peak $1 billion+ valuation.
Bursting of the AI bubble can pull the money back into emerging markets and that too to India.
In EconSphere