https://www.live-feeds.com/feed/character-ai-bankruptcy-disney-bids-20m-for-ai-assetsContinuously updated, source-cited coverage. https://www.live-feeds.com/feed/character-ai-bankruptcy-disney-bids-20m-for-ai-assetshttps://www.live-feeds.com/feed/character-ai-bankruptcy-disney-bids-20m-for-ai-assets#u129745Sat, 17 Oct 2026 23:50:44 +0000Character.AI has filed for Chapter 11 bankruptcy protection in Delaware, with Disney emerging as the lead bidder in a $20 million deal for a license to its intellectual property. The chatbot startup, previously valued at $1 billion, cites high operational costs and ongoing litigation as primary drivers for the filing. Court documents list the company's estimated assets and liabilities between $50 million and $100 million. The company faces potential shutdown if no buyer is secured, while US states are currently seeking protections for children's data during the proceedings.Why it mat