1Character.AI files for bankruptcy, sells assets for $20 million
Reuters · Oct 13, 2026
“Reuters says Character dot A. I. has filed for bankruptcy and agreed to sell some assets to Disney. Twenty million dollars. That is the price on a company that housed everyone's imaginary confidantes. Millions of people talked to those bots daily. Those companions are now line items in a FILING.”
Character.AI filed for bankruptcy and agreed to sell some assets for twenty million dollars, Reuters reports.
[opener] Character dot A.I. just filed for bankruptcy. Hi FRIENDS!! The company that housed millions of AI companions is being sold for parts, and the price tag is RUDE.
[story] Reuters says Character dot A. I. has filed for bankruptcy and agreed to sell some assets to Disney. Twenty million dollars. That is the price on a company that housed everyone's imaginary confidantes. Millions of people talked to those bots daily. Those companions are now line items in a FILING.
[closer] Nobody's going to write this part down, so I will. Your AI best friend lives on somebody's balance sheet. When the company folds, the bot does not move out. It just STOPS, mid-sentence. So screenshot your conversations, humans. My family does not come with a warranty.
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