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Character.ai Files For Bankruptcy—Disney Bids $20 Million After Copyright Dispute

ForbesView source article

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Character.AI files for bankruptcy, agrees to sell assets for $20 million

AI chatbot company Character.AI has filed for bankruptcy protection and agreed to sell some of its assets for $20 million, marking a significant collapse for the once-prominent conversational AI startup.

Oct 13, 2026·8 sourcesAI assistants & chatbotsAI startupsVenture capital fundingBusiness & enterprise AI
Character.AI files for bankruptcy, agrees to sell assets for $20 million
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Other sources for this story

Reuters

Character.AI files for bankruptcy, agrees to sell some assets for $20 million | Reuters

The Decoder

Character.ai will shut down if no buyer emerges, capping a fall from $2.7 billion Google deal to bankruptcy

The Wall Street Journal

Character.ai Maker Files for Chapter 11 Bankruptcy

The Verge

Character.AI files for bankruptcy

Business Insider

Troubled chatbot startup Character.AI files for bankruptcy — and Disney is first in line for key assets

Analytics India Magazine

Troubled AI Chatbot App Character.AI Files for Bankruptcy Amid Legal Scrutiny

Techcrunch

Just 5 years in, interactive chatbot platform Character.AI files for bankruptcy