Is Character.ai shutting down?

Not yet. Character.ai says its platform remains up and all services work during the Chapter 11 sale. If no bid lets the platform keep operating, the company says it will be wound down. The court-supervised sale is expected to finish by late November or early December 2026.

How can I save my Character.ai data?

Character.ai says users can request a copy of their data, or delete their account, through the Character.ai app or website, and its support center has a 'How do I download my data' guide. The company says its privacy policy and data practices are unchanged during the bankruptcy process.

What is Disney buying from Character.ai?

NBC News reports that Disney is the stalking-horse bidder in the Character.ai sale, offering $20 million for a non-exclusive, perpetual license to some of the company's intellectual property. A stalking-horse bid sets a minimum price, so other buyers can still top it before the sale closes.

What happens to Character.ai subscriptions?

Character.ai says paid subscriptions stay active and billing is unchanged for now. The company says subscribers will be told in advance if future service changes affect paid features during or after the sale.

Character.ai · 2026-10-12 · major

Character.ai files for Chapter 11 — the platform shuts if no buyer keeps it

Character.ai filed for voluntary Chapter 11 on 12 October 2026 to run a court-supervised sale. Disney is the $20M stalking-horse bidder for an IP license. The chatbot stays up for now but will be wound down if no bid keeps it running.

Header image from Character.ai's 'An update on Character.ai' blog post

One of the biggest consumer chatbot apps is up for sale in bankruptcy court and may close by December.

Quick facts

Filing	Voluntary Chapter 11, 12 October 2026
Stalking-horse bid	Disney, $20M for a non-exclusive IP license
Expected close	Late November to early December 2026
Service status	Running; subscriptions and billing unchanged
If no buyer	Platform wound down
Assets and liabilities	$50M to $100M each (court filing)

What is it?

Character.ai, the character-chatbot platform, announced on 12 October 2026 that it filed a voluntary Chapter 11 case to sell the company under court supervision. Subscriptions and billing continue for now, and the company expects the sale to finish in late November or early December 2026.

How does it work?

In a Chapter 11 sale, a first 'stalking-horse' bid sets a floor that rivals can top. NBC News reports Disney agreed to pay $20 million for a non-exclusive, perpetual license to some of Character.ai's intellectual property. Character.ai says the platform continues only if a bid lets it keep operating; otherwise it will be wound down.

Why does it matter?

Millions of chats and custom characters now depend on the outcome of a sale. Users and anyone building on the platform should export their data now, which Character.ai supports through its app and website, rather than wait for a possible shutdown notice.

Who is it for?

Character.ai users and creators

Frequently asked questions

Is Character.ai shutting down?: Not yet. Character.ai says its platform remains up and all services work during the Chapter 11 sale. If no bid lets the platform keep operating, the company says it will be wound down. The court-supervised sale is expected to finish by late November or early December 2026.
How can I save my Character.ai data?: Character.ai says users can request a copy of their data, or delete their account, through the Character.ai app or website, and its support center has a 'How do I download my data' guide. The company says its privacy policy and data practices are unchanged during the bankruptcy process.
What is Disney buying from Character.ai?: NBC News reports that Disney is the stalking-horse bidder in the Character.ai sale, offering $20 million for a non-exclusive, perpetual license to some of the company's intellectual property. A stalking-horse bid sets a minimum price, so other buyers can still top it before the sale closes.
What happens to Character.ai subscriptions?: Character.ai says paid subscriptions stay active and billing is unchanged for now. The company says subscribers will be told in advance if future service changes affect paid features during or after the sale.