Character.AI has filed for bankruptcy protection in the US and is pursuing a sale of its assets to Disney. Under the proposed deal, Disney would pay $20 million for unspecified assets, receive a non-exclusive license to the company's intellectual property, and provide transition support for hired employees from the startup, including ex-CEO Karandeep Anand.
The company aims to finalize the sale by late November or early December while maintaining its services—including paid subscriptions—throughout the process. If a suitable offer doesn't materialize, Character.AI plans to shut down the platform entirely.