Disney offers $20M for Character.AI’s scandal-plagued chatbot tech
In a bankruptcy proceeding that kicked off yesterday, Disney has offered to buy some of the technology that powers the controversy-plagued chatbot…
Ars Technica reports that in a bankruptcy proceeding that kicked off yesterday, Disney has offered to buy some of the technology that powers the controversy-plagued chatbot Character.AI.
Disney is willing to pay $20 million for “a non-exclusive perpetual license” of certain Character Technologies intellectual property, the chatbot maker said in a press release that did not go into much further detail on which assets Disney wanted.
This technology story centres on the United States. Names and organisations mentioned in the coverage include AI, Disney and Character Technologies.
Why it matters
Changes in the tech sector often reach consumers quickly through the devices, apps and online services they use every day.
Key details
- Location
- United States · Americas
- Reported by
- Ars Technica
- First reported
- Key names
- AI, Disney, Character Technologies, Character
- Section
- Technology
- Figure cited
- In September 2025, Disney joined others in publicly criticizing Character.AI for stealing content and harming kids. (Ars Technica)
Sources
This is an independent summary. Read the full, original reporting from the publisher:
Read the full story at Ars TechnicaSpotted an error? Request a correction · How this summary was produced
Related Stories
Epic shifts to ‘AI-accelerated development’ for upcoming Disney game
Epic Games plans to use AI to generate code and art for an unannounced Disney game, which is now delayed from its original March release window…
Character.AI files for bankruptcy
Character.AI, one of the first breakout startups of the generative AI boom, has filed for bankruptcy and is selling some of its assets to Disney.
Cerebras CEO pushes back on AI doomsday warnings
Cerebras CEO Andrew Feldman has a message for AI leaders spreading doomsday warnings: Maybe stop talking?
Scientists urge tighter AI controls to prevent global cyber risks
Call comes amid polls casting doubts on political leaders' ability to manage AI risks as US midterm elections near.
Apple’s HomeView ad is confusing to everyone except parents
Apple's ad introducing its new HomeView smart display is a little unusual.
OpenAI employee arrested after recording device found in office
Discovery of ‘sophisticated’ gadget adds to company’s list of privacy concerns after hackings by rogue agents OpenAI said it has found a hidden…
ESA targets Anbernic emulation handhelds as "superfake" piracy enablers
For years, Chinese hardware manufacturers have carved out a market niche with an array of handheld Android gaming devices focused on retro emulation…
Saudi man charged with planting 'sophisticated' recording device in OpenAI office
Prosecutors say the device, wrapped in toilet paper, was found inserted in a USB port on the back of a TV in an executive conference room.





