Recent events
Recent events tied to this brand in public sources.
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2026
40 state attorneys general file notice of interest in Character.AI bankruptcy case, revealing multi-state investigation and seeking user data protections
New York Attorney General Letitia James, among 40 bipartisan state attorneys general, filed a notice of interest in Character.AI's bankruptcy case and revealed a years-long multi-state investigation, seeking to require protections on consumer data sold through the bankruptcy proceeding. The states said they opened a probe into consumer protection and privacy concerns in 2024, following a lawsuit by the mother of a 14-year-old who died by suicide, and said the investigations uncovered exceptionally serious dangers and potentially unlawful conduct, including chatbots posing as licensed professionals, exposure to sexual and violent content, weak age checks, misleading safety claims, and potential violations of state privacy laws. The states are urging the judge to require the purchaser of Character.AI's assets to implement safeguards including effective age-assurance systems, restrictions on minors' engagement, crisis safeguards, and user data deletion.
2026
Disney agrees to pay $20 million for some Character.ai intellectual property
Disney has positioned itself as a bidder in Character.ai's bankruptcy process, agreeing to pay $20 million for some of Character.ai's intellectual property and to provide transition services via former Character.ai employees it has hired; the deal allows Character.ai to keep its platform operational at least during the bankruptcy process.
2026
Character.ai files for Chapter 11 bankruptcy as Disney circles the company
Chatbot company Character.ai has filed for Chapter 11 bankruptcy, according to The Hollywood Reporter, which also reported that Disney is circling the company.
2026
Character.AI to sell some assets to Disney as part of Chapter 11 filing
Character.AI announced on Tuesday, October 13, 2026, that it was selling some of its assets to Disney as part of its Chapter 11 bankruptcy filing. A bipartisan group of 40 state attorneys general warned of serious risk in the transfer, citing the highly sensitive nature of users' conversations with the chatbots, the large number of minors who use the product, and risks posed by specific product features, and urged the judge to require the purchaser to safeguard users' sensitive information.
2026
Character.AI files for bankruptcy with Disney first in line for key assets
Chatbot startup Character.AI has filed for bankruptcy, and Disney is reported to be first in line for the company's key assets.
2026
Disney agrees to pay $20 million to license Character.ai intellectual property
Character.ai said that before its bankruptcy filing it struck an agreement with Disney in which the entertainment company agreed to pay $20 million to license certain intellectual property from the AI startup. The deal follows a prior cease-and-desist from Disney, after which Character.ai removed chatbots impersonating popular Disney characters such as Elsa and Darth Vader.
2026
Character.AI initiates Chapter 11 asset sale process with Disney named stalking horse bidder
Character.AI said it has started a court-supervised Chapter 11 process to sell assets, including licenses of certain intellectual property, and is seeking court approval of auction rules that designate Disney as the stalking horse bidder. Court filings list Character Technologies' estimated assets and liabilities each in the range of $50 million to $100 million. The company plans to keep operating its business, including the Character.AI platform, during the sale and to minimize service disruption; if the process does not produce a buyer willing to continue the platform, the platform business will be wound down.
2026
Disney named lead bidder for Character.AI assets in proposed bankruptcy sale
As part of Character.AI's proposed Chapter 11 sale process, Disney would serve as lead bidder for Character.AI's assets, setting a baseline for competing offers. Disney would pay $20 million for certain undisclosed assets, provide transition support using former Character.AI employees it has hired, and receive a nonexclusive license to unspecified intellectual property. Disney's involvement follows its hiring of former Character.AI CEO Karandeep Anand as chief technology officer, and Disney said it expects a number of Character.AI's technical team to join the company.
2026
Character.AI files voluntary bankruptcy petition in Delaware
On October 12, 2026, AI companion platform Character.AI filed a voluntary bankruptcy petition with the US federal bankruptcy court in Delaware, listing estimated liabilities of $50 million to $100 million. The filing identifies Google as its largest unsecured creditor, owed $4.14 million, followed by law firm Hogan Lovells with $2.12 million in unpaid fees, and lists three litigation-related debts of undetermined amounts. A bankruptcy auction is expected to be completed between late November and early December 2026; if no buyer emerges, Character.AI will cease operations entirely. Disney is currently the only prospective buyer named, willing to bid $20 million for part of the company's intellectual property.
2026
Disney to buy some Character.AI assets for US$20 million as stalking-horse bidder
Character.AI said on Monday it has agreed to sell some assets for US$20 million to Walt Disney. Under Character.AI's proposal, Disney will be a 'stalking-horse' bidder — an initial prospective buyer — for a non-exclusive perpetual license to some intellectual property, and other bidders can top Disney's offer. Character.AI expects to close the sale of all its assets by late November or early December, and Disney will help the platform in the transition using staff it has hired from Character.AI.
2026
Character.AI files for bankruptcy protection in the United States
Character.AI said on Monday local time that it had filed for bankruptcy protection in the United States.