Disney offers $20 million for Character.AI's chatbot technology in bankruptcy sale
Original titleDisney offers $20M for Character.AI’s scandal-plagued chatbot tech
Disney has offered $20 million for Character.AI's chatbot technology as part of Character Technologies' bankruptcy sale, which Character.AI expects to conclude by late November or early December 2026.
Character.AI says the platform will stay online and existing subscriptions will continue, but its privacy policy allows chat logs and voice data to be transferred in an asset sale.
The company faces lawsuits from Kentucky and Pennsylvania over alleged harms to users.
The article links a bankruptcy asset sale to lawsuits over chatbot harms and to how user chat data may transfer, which bears on what happens to users' sensitive information.
Source: Ars Technica · AI · arstechnica.comPublished