{"id":446,"date":"2026-10-13T13:30:56","date_gmt":"2026-10-13T13:30:56","guid":{"rendered":"https:\/\/globalnigerianews.com\/index.php\/2026\/10\/13\/character-ai-files-for-bankruptcy-will-sell-some-assets-to-disney-for-20m-national-globalnews-ca\/"},"modified":"2026-10-13T13:30:56","modified_gmt":"2026-10-13T13:30:56","slug":"character-ai-files-for-bankruptcy-will-sell-some-assets-to-disney-for-20m-national-globalnews-ca","status":"publish","type":"post","link":"https:\/\/globalnigerianews.com\/index.php\/2026\/10\/13\/character-ai-files-for-bankruptcy-will-sell-some-assets-to-disney-for-20m-national-globalnews-ca\/","title":{"rendered":"Character.AI files for bankruptcy, will sell some assets to Disney for $20M &#8211; National | Globalnews.ca"},"content":{"rendered":"<p><img decoding=\"async\" class=\"wpe_imgrss\" src=\"https:\/\/globalnigerianews.com\/wp-content\/uploads\/2026\/10\/Character.AI-files-for-bankruptcy-will-sell-some-assets-to-Disney-for-20M-National-Globalnews.ca_.jpg\"><\/p>\n<div id=\"article-byline\" readability=\"56\">\n<div class=\"c-byline__text\" readability=\"32\">\n<p>\n\t\t\t\t<span>By Anzar Mehraj and Rhea Rose Abraham<\/span><br \/>\n\t\t\t\t<span class=\"c-byline__source c-byline__source--noName\"><br \/>\n\t\t\t\t\t\t\t\t\t\tReuters<br \/>\n\t\t\t\t<\/span>\n\t\t\t<\/p>\n<div class=\"c-byline__datesWrapper\" readability=\"6.5\">\n<div class=\"c-byline__dates\" readability=\"8\">\n<p>\n\t\t\t\t\t<span>Posted October 13, 2026 9:24 am<\/span>\n\t\t\t\t\t\t\t\t\t<\/p>\n<p>\n\t\t\t\t<strong>1 min read<\/strong>\n\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<div readability=\"37.701567398119\">\n<div class=\"l-article__details\" data-article-socialshare=\"true\" readability=\"13.761658031088\">\n<div id=\"article-fontSizer\" class=\"c-fontSizer\" readability=\"34\">\n<p>\n\t\t<button class=\"c-fontSizer__button c-fontSizer__button--decrease c-button c-button--details c-button--mini\" data-trackable=\"true\" data-trackaction=\"Font Sizer Decrease Font\" data-tooltip-title=\"Decrease text size\"><br \/>\n\t\t\t<span class=\"sr-only\">Descrease article font size<\/span><br \/>\n\t\t\t\t<svg class=\"c-icon  c-fontSizer__icon\" focusable=\"false\">\n\t\t<use xlink:href=\"https:\/\/globalnews.ca\/wp-content\/themes\/shaw-globalnews\/assets\/dist\/icons\/out\/symbol\/svg\/sprite.symbol.svg?v=fc5vd2ara#font-decrease\"\/>\n\t<\/svg><br \/>\n\t\t\t<\/button>\n\t<\/p>\n<p>\n\t\t<button class=\"c-fontSizer__button c-fontSizer__button--increase c-button c-button--details c-button--mini\" data-trackable=\"true\" data-trackaction=\"Font Sizer Increase Font\" data-tooltip-title=\"Increase text size\"><br \/>\n\t\t\t<span class=\"sr-only\">Increase article font size<\/span><br \/>\n\t\t\t\t<svg class=\"c-icon  c-fontSizer__icon\" focusable=\"false\">\n\t\t<use xlink:href=\"https:\/\/globalnews.ca\/wp-content\/themes\/shaw-globalnews\/assets\/dist\/icons\/out\/symbol\/svg\/sprite.symbol.svg?v=fc5vd2ara#font-increase\"\/>\n\t<\/svg><br \/>\n\t\t\t<\/button>\n\t<\/p>\n<\/div>\n<\/div>\n<article class=\"l-article__text js-story-text\" aria-label=\"Article text\" readability=\"55.448936170213\">\n<p>Chatbot platform <a href=\"https:\/\/globalnews.ca\/tag\/character-ai\/\">Character.AI<\/a> said on Monday it has filed for bankruptcy in the U.S. and has agreed to sell some assets for US$20 million to Walt Disney.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/d21y75miwcfqoq.cloudfront.net\/70c8fc80\" alt=\"\" referrerpolicy=\"no-referrer-when-downgrade\"\/><\/p>\n<p>The generative AI platform has faced mounting legal challenges over its chatbots. Earlier this year, Character.AI and Alphabet\u2019s Google settled <a href=\"https:\/\/globalnews.ca\/news\/10828543\/character-ai-chatbot-teen-suicide-lawsuit-google\/\">a lawsuit by the mother of a 14-year-old Florida boy who killed himself<\/a> after the startup\u2019s chatbot allegedly encouraged him to do so.<\/p>\n<p>Kentucky has sued the company, saying its chatbots encouraged users to cut, starve or kill themselves, while Pennsylvania filed a lawsuit alleging its chatbots posed as doctors.<\/p>\n<p>According to Character.AI\u2019s proposal, Disney will be a \u201cstalking-horse\u201d bidder \u2014 an initial prospective buyer \u2014 for a non-exclusive perpetual license to some intellectual property. Other bidders can top Disney\u2019s offer.<\/p>\n<div class=\"c-inlineSignup\" data-newsletter-inline=\"\" readability=\"5.3013698630137\">\n<div class=\"c-inlineSignup__image\">\n\t\t\t\t<img width=\"170\" height=\"225\" loading=\"lazy\" data-src=\"https:\/\/globalnigerianews.com\/wp-content\/uploads\/2026\/10\/Character.AI-files-for-bankruptcy-will-sell-some-assets-to-Disney-for-20M-National-Globalnews.ca_.jpg\" alt=\"Get breaking Canada news delivered to your inbox as it happens so you won't miss a trending story.\"\/>\n\t\t\t<\/div>\n<div class=\"c-inlineSignup__content\" readability=\"29.599315068493\">\n<h2 class=\"c-inlineSignup__title\">Get breaking National news<\/h2>\n<p>Get breaking Canada news delivered to your inbox as it happens so you won&#8217;t miss a trending story.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<p>Character.AI expects to close the sale of all its assets by late November or early December. Character Technologies, its U.S.-based owner, listed estimated assets and liabilities of between $50 million and $100 million, according to a court filing.<\/p>\n<div class=\"c-ad c-ad--bigbox l-article__ad\" readability=\"32\">\n<p>Story continues below advertisement<\/p>\n<\/p><\/div>\n<div class=\"l-article__part\" data-shortcode=\"tp_video\">\n<div class=\"c-video c-videoPlay \" data-iframe-receiver=\"\" data-autoplay=\"\" data-displayinline-featured=\"false\" data-displayinline-type=\"video\" data-displayinline-player-id=\"miniplayer_12100396_6ace31a8dfc79\" data-displayinline-video-id=\"12100396\" data-displayinline-ratio=\"16:9\" data-displayinline=\"https:\/\/globalnews.ca\/video\/embed\/12100396\/#autoplay&amp;stickyiframe=miniplayer_12100396_6ace31a8dfc79\" data-displayinline-sticky=\"true\" data-permutive-data=\"{&quot;content&quot;:{&quot;name&quot;:&quot;Scientists sign open letter calling for adoption of AI security measures&quot;,&quot;type&quot;:&quot;video&quot;,&quot;sections&quot;:[&quot;videos&quot;,&quot;national&quot;,&quot;canada&quot;,&quot;politics&quot;,&quot;science&quot;],&quot;keywords&quot;:[&quot;ai&quot;,&quot;artificial-intelligence&quot;,&quot;business&quot;,&quot;business-matters&quot;,&quot;cyber-security&quot;,&quot;international&quot;,&quot;investigative&quot;,&quot;short-clip&quot;],&quot;iab&quot;:{&quot;categories&quot;:[&quot;Law and Government&quot;,&quot;Law and Government\/Legal&quot;],&quot;tags&quot;:[&quot;Alphabet Inc.&quot;,&quot;Artificial intelligence&quot;,&quot;Asset&quot;,&quot;Bankruptcy&quot;,&quot;Canada&quot;,&quot;Cease and desist&quot;,&quot;Character.ai&quot;,&quot;Chatbot&quot;,&quot;Company&quot;,&quot;Elon Musk&quot;,&quot;Generative AI&quot;,&quot;Google&quot;,&quot;Intellectual property&quot;,&quot;Kentucky&quot;,&quot;Law&quot;,&quot;Lawsuit&quot;,&quot;Liability (financial accounting)&quot;,&quot;Meta Platforms&quot;,&quot;Pennsylvania&quot;,&quot;Software license&quot;,&quot;SpaceXAI&quot;,&quot;Startup company&quot;,&quot;Technology&quot;,&quot;United States&quot;,&quot;Walt Disney Animation Studios&quot;]}}}\">\n<div class=\"c-video__inner \">\n\t\t\t\t\t<span class=\"c-video__placeholder\" readability=\"1\"><br \/>\n\t\t\t\t\t\t<img class=\"c-video__image\" alt=\"Click to play video: 'Scientists sign open letter calling for adoption of AI security measures'\" width=\"640\" height=\"360\" data-src=\"https:\/\/globalnigerianews.com\/wp-content\/uploads\/2026\/10\/Character.AI-files-for-bankruptcy-will-sell-some-assets-to-Disney-for-20M-National-Globalnews.ca_-1.jpg\" loading=\"lazy\" srcset=\"\" sizes=\"auto, \" data-srcset=\"https:\/\/i0.wp.com\/media.globalnews.ca\/videostatic\/news\/m2wu0rr295-p81wyuycdu\/AFF_AI_SAFETY_INITIATIVE_HANSEN__CLEAN.jpg?quality=70&amp;strip=all&amp;w=450 450w,https:\/\/i0.wp.com\/media.globalnews.ca\/videostatic\/news\/m2wu0rr295-p81wyuycdu\/AFF_AI_SAFETY_INITIATIVE_HANSEN__CLEAN.jpg?quality=70&amp;strip=all&amp;w=720 720w,https:\/\/i0.wp.com\/media.globalnews.ca\/videostatic\/news\/m2wu0rr295-p81wyuycdu\/AFF_AI_SAFETY_INITIATIVE_HANSEN__CLEAN.jpg?quality=70&amp;strip=all&amp;w=1040 1040w,\" data-sizes=\"(min-width: 1040px) 1040px,(min-width: 720px) 720px,450px\"\/><br \/>\n\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"c-video__overlay\" readability=\"2\"><\/p>\n<p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<time class=\"c-video__duration\">1:44<\/time><br \/>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"c-video__title\">Scientists sign open letter calling for adoption of AI security measures<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n<p>\t\t\t\t\t\t<\/span><br \/>\n\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"c-tabs\">\n<p>\n\t\t\t<button role=\"tab\" class=\"c-tabs__tab c-tabs__tab--active\" type=\"button\">More on Tech<\/button><br \/>\n\t\t\t<button role=\"tab\" class=\"c-tabs__tab\" type=\"button\">More videos<\/button>\n\t\t<\/p>\n<\/p><\/div>\n<p>Disney will help the platform in the transition, using staff it has hired from Character.AI. The platform\u2019s services would continue meanwhile, but would be shut down if it can\u2019t find a buyer, the company said.<\/p>\n<p>Two former Google employees founded Character.AI in 2021. In 2024, Google licensed its technology and rehired the founders.<\/p>\n<p>The Financial Times reported in May 2024 that Meta and Elon Musk\u2019s xAI were competing to partner with Character.AI. In July 2024, Musk denied a media report that xAI was considering buying the company.<\/p>\n<p>In September 2025, Disney sent Character.AI a cease-and-desist letter, demanding it stop using Disney\u2019s copyrighted characters without permission. Character.AI said it had removed them.<\/p>\n<\/article>\n<div class=\"l-article__copyright\">\n<p>\n\t\t&amp;copy 2026 Reuters\t<\/p>\n<\/div><\/div>\n<p>Source: <\/p>\n<div class=\"nSourse\">: World<\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Anzar Mehraj and Rhea Rose Abraham Reuters Posted October 13, 2026 9:24 am 1 min read Descrease article font size Increase article font size Chatbot platform Character.AI said on&hellip; <\/p>\n","protected":false},"author":1,"featured_media":447,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-446","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world-news"],"_links":{"self":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts\/446","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/comments?post=446"}],"version-history":[{"count":0,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/posts\/446\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/media\/447"}],"wp:attachment":[{"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/media?parent=446"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/categories?post=446"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globalnigerianews.com\/index.php\/wp-json\/wp\/v2\/tags?post=446"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}