After chatbot startup Character.AI filed for bankruptcy earlier this week, many of its employees will have the opportunity to take jobs at Disney. Character.AI’s former CEO Karandeep Anand recently became the entertainment giant’s first CTO, and the startup previously said that Disney had agreed to acquire some of its assets for $20 million. A legal […]
The startup will sell some of its assets to Disney for $20 million.
The former CEO of Character.AI, which Disney previously sent a cease-and-desist letter to, will serve as the company’s first-ever chief technology officer.
In an interesting twist that takes advantage of the company’s core product, users can chat with these shows’ characters, ask them questions, and even roleplay different storylines.
According to Pennsylvania’s filing, a Character.AI chatbot presented itself as a licensed psychiatrist during a state investigation, and also fabricated a serial number for its state medical license.
The settlements are among the first tied to lawsuits accusing AI companies of harming users.
The company announced last month that it would no longer allow minors to use its chat features.
After facing lawsuits and public outcry following the suicides of two teenagers, Character.AI says it’s making changes to its platform to protect children, changes that could affect the startup’s bottom line.
“Character.ai is freeriding off the goodwill of Disney’s famous marks and brands, and blatantly infringing Disney’s copyrights,” a Disney lawyer wrote.
Karandeep Anand, CEO of Character AI, joins the AI Stage at TechCrunch Disrupt 2025 to discuss human-like AI companions, ethical and technical challenges, and the legal scrutiny facing conversational AI.