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AI & Enterprise

AI chatbot Character.AI seeks bankruptcy protection as Disney places bid

Character.AI, an AI chatbot platform once valued at $1 billion, has filed for bankruptcy protection and entered a court-supervised sale process. The company cited failed fundraising, monthly operating losses of up to $9 million and legal burdens tied to protecting minors. Walt Disney is the first bidder with a $20 million offer for certain intellectual property and legal claims. Character.AI plans to keep services and subscriptions running during the process.

Crypto

Celsius founder Mashinsky permanently barred from crypto industry in New York settlement

New York state has permanently barred Alex Mashinsky, former CEO of bankrupt crypto lending platform Celsius Network, from the securities, commodities and cryptocurrency industries. The settlement also includes a $35 million penalty that applies only if specific conditions are not met. Court documents say Mashinsky has already accepted a federal forfeiture order of $48,393,446. Regulators including the FTC and CFTC have also imposed bans and penalties, while an SEC lawsuit remains ongoing.

AI & Enterprise

How to assign legal liability for unpredictable AI? Dilemma grows

Debate is growing over who should bear legal responsibility when AI systems cause harm, as recent incidents involving AI models from OpenAI and Anthropic revived the question. Some prominent figures argue AI companies should be liable under existing consumer protection laws. Legal actions and political calls are increasing, but experts warn that applying intent-based legal standards to autonomous AI may be difficult, especially for open-source models and inherently unpredictable behaviour.