TechCharacter.AI files for bankruptcy, plans asset sale to Disney

Character.AI filed for Chapter 11 bankruptcy protection in the US to facilitate a sale of the company and its assets. Disney would lead the bidding, paying $20 million for certain undisclosed assets and receiving a nonexclusive license to unspecified intellectual property. Character.AI says it will keep operating for now but may wind down if no suitable bid emerges.

AIbankruptcyasset saleDisney

TThe Verge★★★☆☆2026-10-13 10:32Original