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00:02Artificial intelligence chatbot startup, Character.ai has filed for Chapter 11 bankruptcy,
00:07following a wave of lawsuits alleging its platform contributed to mental health issues
00:11and suicides among teenagers, according to CNN. The company plans to pursue a court-supervised
00:16sale by the end of the year. Disney has agreed to pay $20 million for some of Character.ai's
00:22intellectual property, allowing the platform to continue operating during bankruptcy proceedings.
00:26Founded in 2021, Character.ai reached a $1 billion valuation after raising $150 million in
00:33funding. The company has since faced lawsuits accusing its chatbots of encouraging self-harm,
00:38suicide, and violence among minors. Character.ai settled five cases earlier this year and restricted
00:44chatbot conversations for users under 18. The company says it will shut down the platform if
00:49a sale is unsuccessful. For all things money, visit Benzinga.com.
