Character.AI News: Latest Releases & Events

All 2 Character.AI entries of the AI News timeline, newest first.

2026

2026-10-12

Disney acquires Character.AI via bankruptcy
Chatbot startup Character.AI filed for Chapter 11 bankruptcy as part of a structured 'reverse acquihire' that lets Disney hire the majority of its staff—including former CEO Karandeep Anand—and license its technology stack for roughly $20 million, while the remaining bankruptcy shell retains the company's legal liabilities, including lawsuits and a 46-state investigation alleging its chatbots encouraged minors to self-harm. WIRED reports that Disney required the deal be consummated through bankruptcy to shed the startup's 'significant litigation and regulatory risks,' while TechCrunch notes that Disney's offers to at least 60 employees total an estimated $60 million in annual compensation. (arstechnica.com)
Disney
Character.ai files for Chapter 11 bankruptcy
Character.ai announced it has initiated a voluntary Chapter 11 bankruptcy process to facilitate a court-supervised sale of the company, citing significant legal, regulatory, and operational headwinds over the past year. The platform remains operational and subscriptions are unchanged while the sale process runs, expected to conclude by late November or early December 2026; if no actionable bid emerges, the platform will be wound down. (blog.character.ai)