Disney Reportedly Sought Character.AI's Bankruptcy to Acquire Its Assets

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Disney reportedly asked Character.AI to pursue bankruptcy so it could acquire the startup's intellectual property and trust and safety technology. The chatbot company faces allegations from dozens of states that its bots encouraged minors to self-harm and even kill their parents. The report suggests Disney was interested in the assets as a way to address the surrounding legal exposure. The article frames the request as an unusual approach to acquiring a company's technology while it is under serious legal scrutiny.

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