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I keep seeing people describe the character dot ai bankruptcy as the first AI bubble domino, so I’m glad to see some reporting on what’s *actually* going on here: arstechnica.com/tech-policy/...

arstechnica.comDisney found a way to buy Character.AI without buying its lawsuitsCharacter.AI faces claims its bots encouraged minors to self-harm and kill their parents.

19/10/26, 5:55 pm32 reposts69 likes

Misty De Méo

@cdrom.ca

This is a way for Disney to buy the company without really buying the company, so they can avoid antitrust. It also gets them out of inheriting the active lawsuits. Character ai has been through this once already - what’s left is kind of a shell after Google hired key employees & licensed their tech

Misty De Méo

@cdrom.ca

This “reverse acqui-hire” has become very common with AI companies in the US, because companies currently believe it’s a way to effectively acquire a company without dealing with antitrust. It gets you the important employees and a license to their tech without *technically* acquiring the company.

bcj

@bcjbcj.bsky.social

we really just want it to be true and that's a recipe for more disappointment

Misty De Méo

@cdrom.ca

Yup...