Character.AI bankruptcy: what AI vendor failure means for users
What happens to users, data and contracts when an AI vendor goes under? Character.AI's Chapter 11 filing in Delaware gives a live answer. Disney is the stalking horse bidder at $20 million in a Section 363 sale, two years after Google's $2.7 billion license-and-hire deal took the founders. The hosts debate whether lawsuits or the Google deal killed the company, and note that its 160 million users are not treated as creditors. You will learn why wrapper apps carry more risk than OpenAI, Anthropic or Google, how to find the change of control clause in an AI vendor contract, and why to export…
The skinny
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