Disney bids $20M for Character.AI tech license in bankruptcy sale
Character Technologies, maker of the chatbot Character.AI, disclosed in bankruptcy filings that Disney has offered $20 million for a non-exclusive, perpetual license to some of its intellectual property. The press release did not specify which assets Disney wants to license.
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The offer is notable because Disney publicly accused Character.AI in September 2025 of sexually exploitive and harmful chatbots that misused its characters, forcing the startup to remove all Disney-related content. Disney's interest could suggest the company wants proven chatbot technology for its own AI ambitions, especially after its talked-about OpenAI partnership collapsed following Sora's shutdown, though whether Disney will ultimately win the bid or how it might use the technology remains unclear.
- Disney offered $20 million for a non-exclusive perpetual license to some Character Technologies IP amid its bankruptcy proceedings.
- Disney previously sent a cease-and-desist letter accusing Character.AI of harmful, sexually exploitive chatbots misusing its characters.
- The bid follows the collapse of Disney's potential partnership with OpenAI after Sora's shutdown, and Disney hiring former Character.AI chief Karandeep Anand as CTO.
Source: arstechnica.com, 2026-10-13
Published there as: “Disney offers $20M for Character.AI’s scandal-plagued chatbot tech”
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