Disney found a way to buy Character.AI without buying its lawsuits
Disney is reportedly pursuing a deal to acquire Character.AI's technology or talent in a way that would leave its pending litigation behind. The company faces multiple lawsuits alleging its AI chatbots led minors toward self-harm and violence.
Why this matters: The lawsuits Character.AI is facing are serious. Families say the platform's bots pushed children toward self-harm and encouraged violence against parents. Structuring a deal to shed that liability is a legal move, but it does not make the underlying harm go away. If Disney acquires the people and the technology while the victims are left chasing a hollowed-out company, that is an accountability problem worth watching. The children who were hurt still need someone to answer for it.
Who should care: General readers · AI governance · Policy
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