Character.AI, the app for chatting with AI characters, filed for Chapter 11 bankruptcy in the Delaware bankruptcy court on October 12 to sell its assets. The first bidder is Disney, which offered $20 million for a non-exclusive license to some of Character.AI's technology. The sale is expected to finish by late November or early December.
What happens to users
The company says the platform remains up and running and all services are still available. Paid subscriptions stay active, and users can export their data. If no workable bid comes in, the platform will be shut down.
What to do now
If you have characters or long conversations you care about, export them now rather than waiting for the outcome of the sale. Character.AI's own update is the place to watch for changes to subscriptions and access.
Why it matters
Character.AI was one of the best-known consumer AI apps, with a large audience for roleplay and storytelling. Its bankruptcy is a reminder that conversations and creations stored in an AI app depend on the company behind it, and that keeping your own copies matters when choosing where to build.