Character.AI files for bankruptcy amid torrent of legal problems, agrees to sell some assets to Disney for $20M

New York Post
By Marc VartabedianOct 13, 2026, 2:41 pm176 pts
The potential Disney deal comes roughly a year after the entertainment giant hit Character.AI with a cease and desist letter claiming it was using its iconic characters for "grooming and sexual exploitation" and "emotional manipulation."

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