DAILY BRIEF

Character.AI files for bankruptcy and sells some assets to Disney for $20 million

Updated 2026-10-17 · told from many outlets at once

Character.AI filed for Chapter 11 bankruptcy. Disney offered $20 million to buy some of its assets. The company, founded in late 2021 by Noam Shazeer and Daniel De Freitas, had estimated assets between $50 million and $100 million.

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Outlets: Ars Technica - All content, International: Top News And Analysis, Observador, TechCrunch, The Verge, de Volkskrant, globalnews.ca

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