Character.AI Files for Bankruptcy

AI 📅 Oct 13, 2026 ✍️ Aamir Raza

The once-hyped AI chatbot startup is selling its assets — and Disney is first in line. LexxWire

From $2.7B Google Deal to Bankruptcy

In 2024, Google paid $2.7 billion to license Character.AI's tech and hire its founders. Two years later, the company filed Chapter 11. LexxWire

Disney Bids $20M for the AI Tech

Disney's $20 million sets the opening bid for a license to the startup's AI technology. Rival bidders can still top it at auction. LexxWire

Mounting Costs and Lawsuits

Heavy operating costs, leadership departures, and a string of legal troubles drained the company behind one of the most popular chatbot apps. LexxWire

Will the App Survive?

Character.AI says the app keeps running during the sale — but it will shut down if no buyer steps in by December. LexxWire

Character.AI Files for Bankruptcy — Disney Bids $20M for Its AI Assets