Disney offers $20M for Character.AI’s scandal-plagued chatbot tech
Disney offered $20 million for Character.AI's chatbot technology in the company's bankruptcy sale.
Disney has offered $20 million to buy Character.AI's chatbot technology through Character Technologies' bankruptcy sale, which the company hopes to finish by late November or early December 2026. Character.AI previously reported more than 20 million monthly active users, and NBC News said estimated assets and liabilities are $50 million to $100 million. The company faces litigation including a settled case over the death of 14-year-old Sewell Setzer III, plus suits from Kentucky and Pennsylvania alleging other user harms. Its privacy policy says identifying data, voice data, and chat logs may transfer in an asset sale, while the service is expected to stay online.
- Disney offered $20 million for Character.AI technology in a bankruptcy sale.
- Character.AI reported more than 20 million monthly active users last year.
- Estimated assets and liabilities are $50 million to $100 million.
- Kentucky and Pennsylvania are suing over alleged chatbot harms.
- Privacy policy allows chat logs and voice data to transfer in an asset sale.
- Vendors
- Disney
- Products
- Character.AI
- Organizations
- DisneyCharacter TechnologiesCharacter.AI
- Countries
- United States
From the original article
2 min read at arstechnica.com
Disney may acquire tech from one of the first chatbot makers linked to child suicide.
By Ashley Belanger · arstechnica.com
A short excerpt; the article and its images belong to the publisher. Summary, key facts and assessment above are AI-written from the article and can be wrong.