Disney has offered $20 million for a non-exclusive perpetual license of Character.AI's technology as part of the latter's bankruptcy proceedings. The move comes despite Disney previously condemning Character.AI's chatbots as harmful to children and sending a cease-and-desist letter over IP infringement in September 2025. Disney has been seeking AI opportunities after its partnership with OpenAI collapsed following Sora's shutdown.
Background
Character.AI, an AI chatbot company known for user-generated character personas, entered bankruptcy proceedings in October 2026. Disney's former AI partnership with OpenAI ended after Sora was abruptly shut down, prompting the entertainment giant to explore alternative AI technology acquisitions.
- Source
- Ars Technica
- Published
- Oct 14, 2026 at 02:23 AM
- Score
- 7.0 / 10