Seems like the first big name bankruptcy. I expect a few more of these early 2023-24 wrapper companies to follow. Obviously Character AI was a shell of it’s former self after the Google lift out, but I was interested and dug through the filings : Some highlights
- The person they owe the most ($4.1m) is Google. Funny since they were the one that did that weird acquisition thing. To me it seems like if they wanted to forgive that amount, they would have. They also owe DoorDash $90k. Too many slop bowls lol.
- Three of the top 20 “creditors” are lawsuits: Pennsylvania, Kentucky, and a minor whose name is redacted. The amount for each is listed as “unknown”.
- Most of the staff is already gone… Of about 86 full-time employees in September, 66 accepted offers from Disney (the lead bidder) before the filing. 18 are left, and only 8 are expected to stay through the case.
- Their own explanation: AI entertainment “has proven to be costly to develop and grow,” and those costs plus “potential litigation related liabilities and regulatory engagement” meant it couldn’t support the business “in its present form.” Anyways, I think this was to be expected and Google let them die. Still something to watch though! submitted by /u/Top_Pumpkin_2087
Originally posted by u/Top_Pumpkin_2087 on r/ArtificialInteligence
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