Provider announcement / Safety & wellbeing · Governance & regulation
Character.AI says its platform remains operational during a court-supervised Chapter 11 sale process, but will wind down if no viable continuation bid emerges. The company also describes a $20 million Disney agreement for a non-exclusive technology licence and certain claims; this does not mean Disney has bought the operating platform.
Why it matters
Companion systems need plans for service changes and endings as well as everyday safety. This development brings continuity, user communication and access to conversation records into focus.
Read with care
Company statements, not independent verification of court orders, future service continuity or privacy assurances. The claims-agent portal could not be retrieved. The platform has not been announced as already closed, and the sale is not complete. Bankruptcy does not itself establish wrongdoing or harm to users.
What was checked
Company blog and company-issued press release checked. Original court filings were not available for inspection. Checked 2026-10-14.