Court documents show that the artificial intelligence startup Character.AI currently owes nearly $7 million to Google and a group of major law firms, which also gives outsiders a glimpse of the financial pressures behind its bankruptcy application.

Character.AI Allows users to create personalized AI robots. The company filed for Chapter 11 bankruptcy protection in Delaware on Monday and plans to complete a court-supervised company sale by the end of this year.

This bankruptcy application shows that Character.AI owes a total of over $10.6 million to its 20 largest unsecured creditors, including over $4 million to Google and $2.6 million to five well-known law firms.

Among these law firms, Hogan Lovells is owed the highest amount, which is approximately 2.1 million US dollars. White and Case are listed as owing about 189,000 US dollars; Munger, Tolles, Olson, Skadden, Arps, Slate, Meagher and Flom, as well as Quinn Emanuel Urquhart and Sullivan are owed approximately 137,000 US dollars, 126,000 US dollars, and 64,000 US dollars respectively.

Representatives from Google and these law firms did not immediately respond to requests for comment.

Court documents do not disclose the nature of these debts. However, Character.AI, founded by former Google researchers, listed Google Cloud as its preferred cloud infrastructure in 2023. The startup is also facing a wave of lawsuits accusing its chatbots of causing harm to young users or encouraging harmful behavior. Character.AI has agreed to settle several lawsuits earlier this year.

The bankruptcy documents submitted by this AI company indicate that the aforementioned legal dispute may be part of a broader financial tightening.

The bankruptcy application for Character.AI estimates that its asset value is between 50 million and 100 million US dollars, with liabilities also falling within the same range.

Character.AI said to Business Insider, that over the past year, "in the face of significant legal, regulatory, and operational challenges, the company has taken meaningful steps to maintain and improve our business."