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.
Character’s app hosts companion chatbots designed for casual conversations and role-play. Many are created by users and based on fictional characters.
Disney alleged last year that Character had made unauthorized use of its copyrighted characters, but the entertainment giant recently hired the start-up’s chief executive and some other staffers.
In a news release late Monday, Character said the company filed for protection from its creditors in U.S. Bankruptcy Court in Delaware and is selling all of its assets. Disney has agreed to pay $20 million to license some of the company’s intellectual property, but Character will accept higher or better offers, the release said.
Character this year settled two lawsuits that alleged teens died by suicide following extended time spent talking to characters on the app. Kentucky’s attorney general last week made a new filing in a suit filed in January that alleges that the company’s bots encouraged users to self-harm, including by cutting themselves.
Disney did not immediately respond to request for comment. “The Character.ai platform remains up and running,” a spokesperson for the start-up told The Washington Post.
If you or someone you know needs help, visit 988lifeline.org or call or text the Suicide & Crisis Lifeline at 988.
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