Disney offers $20 million for Character.AI's chatbot technology

The offer comes as the artificial intelligence startup enters bankruptcy, a company that has battled legal claims over child protection and copyright.

By Standard Topic. AI-generated from the reporting listed under Coverage. Published October 13, 2026. Updated October 15, 2026.

This story is no longer being updated. It reflects reporting up to October 14, 2026.

What happened

Disney has offered to buy some technology behind the chatbot Character.AI through a bankruptcy proceeding, paying $20 million for a non-exclusive perpetual license to certain intellectual property. The company has also faced legal claims about child protection and copyright involving Disney, and it filed for bankruptcy.

Why it matters

The offer would give Disney a non-exclusive license to certain technology from a company in bankruptcy.

Timeline

Oct 13, 2:23 PM ET: Disney offered $20 million for a non-exclusive perpetual license to certain Character Technologies intellectual property in a bankruptcy proceeding that began the previous day.
Oct 13, 5:34 PM ET: Disney reached a $20-million deal for Character.AI's assets as the AI startup filed for bankruptcy.

Coverage

Other AI Companies Should Be Very Afraid of What Just Happened to Character.AI, According to Its Own Bankruptcy Documents (futurism.com) October 14, 2026
Now that Character.AI is going bankrupt, what happens to all of its users’ data? (theverge.com) October 14, 2026
Disney strikes $20-million deal for Character.ai's assets as AI startup files for bankruptcy (Los Angeles Times) October 13, 2026
Just 5 years in, interactive chatbot platform Character.AI files for bankruptcy (techcrunch.com) October 13, 2026

Disney offers $20 million for Character.AI's chatbot technology

What happened

Why it matters

Timeline

Coverage

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