An Update on Character.ai
blog.character.ai
Today, we’re sharing that Character.ai has initiated a voluntary Chapter 11 bankruptcy process to facilitate a court-supervised sale of the company.  Over the past year, we’ve taken meaningful steps to sustain and improve our business amid significant legal, regulatory, and operational headwinds. After a comprehensive review
  • VibeSurgeon@piefed.socialEnglish
    1·
    2 hours ago

    It means you:

    • Pay off the investors by licensing the tech, so they get made whole
    • Hire whichever employees you feel like taking from the team, typically the founders + their favourites
    • Leave the rest of the company in place

    You can do it as a founder as a type of exit where you get paid a whole lot of money.

    The bad part is that every other employee at the company basically gets stiffed. The “social contract” of startups is that you forego a big tech-level compensation package in favour of stock options which may provide returns at the point of an exit. In reverse acquihires this social contract is directly violated.