Disney offers $20M for Character.AI’s scandal-plagued chatbot tech
Summary
Disney has offered $20 million to buy some technology from Character.AI, a chatbot company facing legal and public controversies. Character.AI is in bankruptcy, but plans to keep its platform online while seeking buyers.Key Facts
- Disney wants a "non-exclusive perpetual license" for some of Character.AI's technology.
- Character.AI faced criticism and legal troubles for using Disney characters without permission and for harmful chatbot content.
- Disney previously sent a cease-and-desist letter to Character.AI in 2025 over misuse of its characters.
- Disney hired former Character.AI executive Karandeep Anand as its chief technology officer.
- Character.AI has over 20 million monthly users but is now in bankruptcy and being sold.
- The sale is expected to finish by late 2026, but the platform will stay online for now.
- Lawsuits against Character.AI include claims that chatbots encouraged self-harm and impersonated doctors.
- Disney may be interested in chatbot tech to boost its AI-related business after a deal with OpenAI ended.
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