https://www.live-feeds.com/feed/character-ai-files-for-bankruptcy-agrees-to-sell-some-assets-for-20-millionContinuously updated, source-cited coverage. https://www.live-feeds.com/feed/character-ai-files-for-bankruptcy-agrees-to-sell-some-assets-for-20-millionhttps://www.live-feeds.com/feed/character-ai-files-for-bankruptcy-agrees-to-sell-some-assets-for-20-million#u124949Fri, 16 Oct 2026 04:51:50 +0000Character.AI has filed for Chapter 11 bankruptcy and agreed to sell some assets to Walt Disney for $20 million. The company, which offers a chatbot platform, hopes to use bankruptcy to resolve all legal claims against it. Character.AI had previously been in talks with Elon Musk's xAI and Meta. The bankruptcy puts 21.6 million users' intimate chatbot conversations on the auction block.Why it mattersCharacter.AI's bankruptcy and asset sale come amid legal battles, including a challenge from Disney over character usage. The company's chatbot platform allows users to create and