Disney acquires Character AI technology and staff in bankruptcy deal
Disney is acquiring Character AI's technology and hiring most of its staff through a prepackaged bankruptcy. The deal avoids legal liabilities, including lawsuits over content, while Disney integrates the founder as a chief technologist.
Character AI filed for bankruptcy as part of a deal for Disney to acquire its technology and hire most of its staff. The founder became a chief technologist at Disney. The move is described as a prepackaged bankruptcy designed to avoid the startup's legal liabilities, including lawsuits from parents over the product's content. In a separate prediction segment, Scott Galloway argued that Meta is the likely winner of the AI race due to its distribution of 3 billion daily active users and 500 million business relationships. He cited Meta's AI spending and the success of its Muse app, noting that Meta's LLMs are arguably at parity with Anthropic and OpenAI. Kara Swisher countered that Google might win by being more utilitarian, citing an interview with Reed Hastings, who is on Anthropic's board. Both agreed that the utility of AI products will determine the ultimate winner over the next three years.