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Disney News: Latest Releases & Events

In October 2026, Disney agreed to hire most of Character.AI's staff and license its technology through a Chapter 11 bankruptcy. In March 2026, OpenAI announced it would shut down its Sora app and end its $1 billion licensing deal with Disney. That deal began in December 2025, giving Sora access to more than 200 Disney characters.

All 3 Disney entries of the AI News timeline, newest first.

2026

October 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)
    Character.AI

March 2026

2026-03-25

  • OpenAI shuts down Sora app to focus on enterprise
    OpenAI announced it is shutting down its viral Sora AI video app and terminating a $1 billion licensing deal with Disney to prioritize its enterprise strategy and reduce high compute costs. According to Understanding AI, an executive stated the company cannot afford to be 'distracted by side quests' as it seeks to streamline operations ahead of a potential IPO. (aibusiness.com)
    OpenAI

2025

December 2025

2025-12-12