Disney has offered $20 million to acquire Character. AI’s chatbot technology, a platform facing bankruptcy and multiple lawsuits. Character.
AI, with over 20 million monthly active users, has been embroiled in legal troubles, including a lawsuit over the suicide of a 14-year-old boy and state allegations of encouraging self-harm and impersonating doctors. The company filed for bankruptcy to maximize shareholder value, assuring users the platform will remain online. The sale is expected to conclude by late 2026.
However, concerns linger over the potential sale of sensitive user data, including chat logs and voice recordings, as the company’s privacy policy allows data transfer during asset sales. Critics argue this disregards user vulnerability to sharing personal information with chatbots.
Source: Ars Technica · Summarized by HeadlinesBriefing