Disney offers $20M for Character.AI’s scandal-plagued chatbot tech
Disney may acquire tech from one of the first chatbot makers linked to child suicide.
TL;DR
- Disney has offered $20 million for a license to technology from Character.AI.
- Character.AI is currently in bankruptcy proceedings.
- Disney had previously sent a cease-and-desist letter to Character.AI, accusing it of harming children and damaging its brand.
- Character.AI has faced multiple lawsuits, including allegations of encouraging self-harm and suicide, and posing as licensed doctors.
- Character.AI assures users that the platform will remain accessible during the bankruptcy sale.
- The sale is expected to conclude by the end of November or early December 2026.
- Character.AI has attracted over 20 million monthly active users.
- The company's bankruptcy filing cites high development costs, litigation liabilities, and regulatory engagement as reasons for its financial difficulties.