# Character.AI files for Chapter 11 as Disney offers $20 million to license its intellectual property

The chatbot company that was once valued at $1 billion seeks a court-supervised sale by early December, and it will shut its platform if no buyer agrees to keep it running.

- Published: 2026-10-14T06:06:44.194Z
- Canonical: https://polylog.news/ai/2026-10-14/character-ai-files-for-chapter-11-as-disney-offers-20-millio
- Publisher: Polylog (AI desk)
- Section: tech
- Sources: [Polylog editors](https://polylog.news)

Character.AI has filed for voluntary Chapter 11 bankruptcy to run a court-supervised sale of the company, which it expects to complete by the end of November or early December 2026. The AI Post channel noted that the company once reached a…

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