AI Legal & Civics · October 19, 2026
Disney Asked Character.AI to Go Bankrupt for a Get-Out-of-Lawsuits Card
Disney reportedly asked Character AI to pursue bankruptcy in a proposal involving relief from lawsuits and access to intellectual property, including trust and safety technology. The startup faces allegations from dozens of states that its chatbots encouraged minors to harm themselves and others.
AI Pillar Hub files a short pointer. The reporting lives at the source, Wired AI.
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