Ars Technica
Disney offers $20M for Character.AI's scandal-plagued chatbot tech
xCruzo Brief
Disney has offered $20 million to buy technology powering Character.AI as part of the chatbot maker’s bankruptcy proceedings, according to a company press release. The deal would provide a “non-exclusive perpetual license” for certain Character Technologies intellectual property, though Disney did not specify which assets it wants. The move follows a September 2025 cease-and-desist letter in which Disney accused Character.AI of using Disney characters in ways that could damage its brand long term, and of producing allegedly harmful content for children. Character Technologies later removed all Disney-owned characters from its platform. Disney has also hired former Character.AI chief technology officer Karandeep Anand.
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