AI Matters
Why it matters
Character.AI files for bankruptcy and sells some assets to Disney
TechCrunch Just 5 years in, interactive chatbot platform Character.AI files for bankruptcy
Character.AI filed for bankruptcy and will sell some assets to Disney for $20 million, while seeking a buyer for the rest amid lawsuits over harm to minors.
Why it matters
If you use Character.AI chatbots, the service could shut down if no buyer emerges.
Latest brief · Oct 19, 2026