Character.AI Files for Chapter 11

What happened and when

In its announcement, Character.AI says the platform "remains up and running" and that if a bid allowing continued operation is unavailable, the platform will be wound down. Our Character.AI review carries the full app facts; this page covers the filing only, and our AI companion news lists related stories.

Character.AI bankruptcy: what the reports say about Disney's bid

The two press accounts we read differ, so we attribute each. TechCrunch reports that Character.AI agreed to sell some of its assets to Disney for $20 million, with Disney also getting a non-exclusive perpetual license to its technology. TechCrunch does not say which assets are included, and says there is not yet a buyer for the platform.

CNBC, as we recorded it, describes Disney as the stalking-horse bidder offering $20 million to license some of the company's intellectual property. A stalking-horse bid is an opening offer in a bankruptcy sale that other bidders can try to beat. Whether the $20 million buys assets, a license or both is reported differently, so we will update this page when the court record is clear.

What the 40 attorneys general asked for

On October 14, New York Attorney General Letitia James and 39 other attorneys general filed in the Chapter 11 case. According to the New York AG's release, they asked the court, the company and any buyer to protect children and users' private conversations. The requests include age verification beyond self-declaration, limits on using private chats for AI training without valid consent, and a chance for users to access and delete their data before any sale.

This is a request to the court, not a ruling. Character.AI's own announcement says its privacy protections and data practices are unchanged.

What users and subscribers should do now

1. Export your data. On the web, open Profile > Settings > Account > Manage Account & Data and choose Export data (the Help Center steps). In the mobile app, tap the settings icon and choose Export my data. We could not confirm the export format or whether another app can import it, and we did not run the export ourselves.
2. Know where you pay. Web subscriptions are managed in Settings > Account > Manage (an emailed Stripe link); app-store subscriptions in the App Store or Google Play. See our cancellation guide.
3. Watch the company blog. The company says it intends to notify subscribers in advance if the service changes in a way that affects paid features. That is an intention, not a guarantee.

Refunds are limited: the terms say payments are non-refundable except where required by law, and Apple or Google decide app-store refunds. As general advice, a monthly plan leaves less money at risk than a prepaid year. Prices are on our Character.AI pricing page.

Your data could also move with the company: the privacy policy allows disclosure in a sale of company assets. Account deletion is available from the profile page, but a public Character you made may be preserved. See how to export chat history and how to delete an account.

If Character.AI goes away: other options

Character.AI allows no NSFW or erotic roleplay for anyone. Our research lists Janitor AI (adult content between consenting adults allowed, 18+), Talkie (also SFW-only) and Chai (mobile-only) as closest in style. See Character.AI alternatives and Character.AI vs Janitor AI.