Character.AI owes Google and Big Law firms nearly $7M, court filings show
Character.AI filed for Chapter 11 bankruptcy protection on Monday and plans to complete a court-supervised sale of the company by the end of the year.
Artificial intelligence startup Character.AI filed for Chapter 11 bankruptcy protection, revealing it owes a combined $7 million to Google and five major law firms. The AI platform, founded by former Google employees, owes over $10.6 million to its 20 largest unsecured creditors, according to court filings. Google was owed $4 million, while a group of five prominent law firms was owed $2.6 million in total.
Hogan Lovells was owed the largest share, about $2.1 million, followed by White & Case at $189,000 and Munger, Tolles & Olson, Skadden, Arps, Slate, Meagher & Flom, and Quinn Emanuel Urquhart & Sullivan at $137,000, $126,000, and $64,000, respectively. The court filing does not disclose the nature of the debts, but Character.AI acknowledged the financial strain stemming from legal troubles and high development costs.
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