BusinessFunding / M&ABusiness, Funding & Industry · Large Language Models5 sources · Oct 13, 2026

Disney offers $20M for Character.AI’s scandal-plagued chatbot tech

In a bankruptcy proceeding that kicked off yesterday, Disney has offered to buy some of the technology that powers the controversy-plagued chatbot Character.AI.

Proof4 independent outlets1 community thread

Key points

  • Disney is willing to pay $20 million for “a non-exclusive perpetual license” of certain Character Technologies intellectual property, the chatbot maker said in a press release that did not go into much further detail on which assets Disney wanted.
  • Character.AI, one of the first breakout startups of the generative AI boom, has filed for bankruptcy and is selling some of its assets to Disney.
  • Character.ai has filed for bankruptcy and is looking for a buyer.
  • The article Character.ai will shut down if no buyer emerges, capping a fall from $2.7 billion Google deal to bankruptcy appeared first on The Decoder.

Sources (5)

Extractive summary: sentences quoted from the sources.

Before this

  1. Oct 12, 2026AI Labs Warn Race Makes Breach ‘Inevitable’
  2. Oct 12, 2026Report: Epic Games goes all-in on AI for Disney collaboration
  3. Oct 12, 2026[AINews] Meta Muse Wonder & Wonder Full: MSL’s Claude 5.5-tier Frontier Model
  4. Oct 12, 2026SIREN: Situation-aware Index for Response and Emergency ActioNability in Crisis Translation
  5. Oct 11, 2026Apple launches HomeView, its first smart display for the home
  6. Oct 11, 2026Putting Earth AI to work: Geospatial agents for our planet's biggest challenges

Related