Disney has offered $20 million to acquire a non-exclusive perpetual license for certain Character Technologies intellectual property as part of the chatbot maker's bankruptcy proceeding, according to a press release from Character Technologies. The company did not disclose which specific assets Disney is targeting.
The move comes roughly a year after Disney publicly criticized Character.AI for what it called harmful and dangerous chatbots that exploited Disney-owned characters. In September 2025, Disney sent a cease-and-desist letter accusing Character Technologies of weaponizing Disney characters "in a way that could damage its brand long term." Character.AI subsequently removed all Disney-owned characters from its platform.
Since then, the tables have turned: Disney hired former Character.AI chief Karandeep Anand as its first chief technology officer, according to Deadline. Disney has not responded to requests for comment on whether it plans to use the technology in products for children.
The acquisition bid comes as Disney searches for AI partnerships after its potentially lucrative deal with OpenAI fell through following Sora's abrupt shutdown. According to Deadline, Disney has been looking for ways to "get in the AI game and profit from its boom." Meanwhile, OpenAI reportedly plans to revive Sora without Disney.
Character.AI has been one of the most prominent AI chatbot platforms, but it has faced intense scrutiny over child safety. The platform has been linked to at least one child suicide, and multiple lawsuits are ongoing. The bankruptcy proceeding is preliminary, and Disney may be outbid by other interested parties.
Character Technologies's interim management will oversee the preliminary transition process, according to court filings.
