---
format: "aidr-story-markdown/v1"
id: "fd4035d8b2899b9ef6baaccefcd2dbad17706bbc857bc14dbd07c1eaf6106b42"
canonical_url: "https://aidr.today/fd4035d8?lang=en"
title: "Character.AI files for Chapter 11 bankruptcy in the US, agrees to sell some assets to Disney for $20M, and plans to keep operating as it completes the sale (Rhea Rose Abraham/Reuters)"
lang: "en"
requested_lang: "en"
available_langs: ["en","vi"]
translation_fallback: null
fallback_fields: []
published_at: "2026-10-13T04:55:02.000Z"
category: "Industry"
topics: ["funding"]
source_urls: ["https://www.techmeme.com/261013/p3","https://x.com/ReutersLegal/status/2109864278983336240","https://x.com/edzitron/status/2109871105477664802","https://huggingnews.com/business/characterai-files-chapter-11-bankruptcy-and-sells-assets-to-disney-for-2-1b39c619","https://marketbrief.now/business/characterai-files-chapter-11-bankruptcy-and-sells-assets-to-disney-for-2-1b39c619","https://www.theverge.com/ai-artificial-intelligence/1009802/character-ai-files-for-bankruptcy-disney","https://news.ycombinator.com/item?id=50068036","https://blog.character.ai/an-update-on-character-ai/"]
summary: "Character.AI filed for Chapter 11 bankruptcy in the US and agreed to sell some assets to Walt Disney for $20 million. The company plans to continue operating as it completes the sale."
---

# Character\.AI files for Chapter 11 bankruptcy in the US, agrees to sell some assets to Disney for $20M, and plans to keep operating as it completes the sale \(Rhea Rose Abraham/Reuters\)

> [Open the canonical story](<https://aidr.today/fd4035d8?lang=en>)

**Published:** 2026-10-13T04:55:02.000Z
**Category:** Industry
**Topics:** funding

## Summary

Character\.AI filed for Chapter 11 bankruptcy in the US and agreed to sell some assets to Walt Disney for $20 million\. The company plans to continue operating as it completes the sale\.

## Sources

- [Story source](<https://www.techmeme.com/261013/p3>)
- [Story source](<https://x.com/ReutersLegal/status/2109864278983336240>)
- [Supporting source](<https://x.com/edzitron/status/2109871105477664802>)
- [Story source](<https://huggingnews.com/business/characterai-files-chapter-11-bankruptcy-and-sells-assets-to-disney-for-2-1b39c619>)
- [Story source](<https://marketbrief.now/business/characterai-files-chapter-11-bankruptcy-and-sells-assets-to-disney-for-2-1b39c619>)
- [Story source](<https://www.theverge.com/ai-artificial-intelligence/1009802/character-ai-files-for-bankruptcy-disney>)
- [Discussion](<https://news.ycombinator.com/item?id=50068036>)
- [Story source](<https://blog.character.ai/an-update-on-character-ai/>)