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Engadget2 min read

Character.AI just filed for bankruptcy, and former foe Disney may buy it for parts

Character.AI, a controversial generative AI startup that lets users create their own chatbot characters, has filed for Chapter 11 bankruptcy

By Steve DentEngadget
Character.AI just filed for bankruptcy, and former foe Disney may buy it for parts

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Originally published by Engadget on Oct 13, 2026.

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