Character.AI Files for Chapter 11 Bankruptcy: What Is Reported

Character.AI’s parent company filed for Chapter 11

Published: October 13, 2026

Character.AI’s parent company, Character Technologies, announced on Monday, October 12, 2026 that it filed for Chapter 11 bankruptcy, according to CBS News (updated October 13). CNN also reported the filing on October 13. This page covers only what those reports say.

What the sources report

• CEO Colin Adams cited “significant legal, regulatory and operational headwinds.”
• The board chose a court-supervised sale as the best way to maximize value for all stakeholders.
• The company expects a sale by late November or early December, CBS reported. CNN reported that if no sale is completed, the platform will be wound down.
• CBS reported that the service continues to operate and subscriptions remain active. The company says it will notify subscribers in advance if changes affect paid features.
• Disney agreed to pay $20 million for a non-exclusive, perpetual license to some of the company’s intellectual property, CBS reported. CBS does not say Disney is the buyer.
• CNN reported assets between $50 million and $100 million in the filing, and that the company settled five lawsuits earlier in 2026.

Data and the attorneys general

CBS reported that user data remains covered by the privacy policy, which allows disclosure in connection with a sale. Users can delete their accounts or export their data.

On October 14, New York Attorney General Letitia James and a coalition asked the bankruptcy court to ensure any sale includes protections for children and consumers, such as age verification beyond self-reported age.

What this does and does not show

These are early reports on a developing case. We do not speculate about what happens next, and nothing in these sources describes how the filing changes anyone’s use of the app.

What readers can do

• Check the company’s own notices for current information.
• If you want to keep or remove your data, use the account tools described by CBS.
• If chatting with characters is taking over your sleep or relationships, our free self-check can help you look at your habits.

If you need support

If you or someone you know is in distress, call or text 988 (US), text HOME to 741741 for Crisis Text Line, or call SAMHSA at 1-800-662-4357. In an emergency, call 911.

Is Character.AI shutting down?

The reports we read say the service continues to operate and subscriptions remain active. CNN reported the company said the platform will be wound down if no sale is completed.

Can I delete or export my Character.AI data?

CBS News reported that users can delete their accounts or export their data. Check the company’s own notices for how.

This page is for education only. It is not medical advice, a diagnosis or a treatment plan.