Character.AI Files Chapter 11, Sells Assets to Disney

By EC Assets · Published 13 October 2026

Character.AI, an artificial intelligence entertainment platform, has commenced a voluntary Chapter 11 bankruptcy case. The company reached an agreement to sell some of its assets to Disney for $20 million. The filing and asset sale agreement were announced on October 13, 2026. Character Technologies Inc. the parent company of Character.AI, initiated the Chapter 11 proceeding in the U.S. This action aims to facilitate a value-maximizing sale process for the company. Character.AI positions itself as a pioneering artificial intelligence entertainment platform. The asset sale agreement with Disney involves certain assets of Character.AI. The value of this transaction is $20 million. This article is intended for informational purposes only. It does not constitute investment advice.