The Times of India

AI company once pursued by Elon Musks xAI and Meta files for bankruptcy, may shut down

Character.ai, the AI company known for its chatbots, has filed for Chapter 11 bankruptcy protection. The company aims to sell its assets with a proposed auction process led by Disney. Character.ai's board believes this method will maximize value for its stakeholders during the sale. Earlier discussions for partnerships with Meta and Elon Musk's xAI occurred in 2024.