# Character.AI files for Chapter 11 as platform faces possible shutdown

_Published Tuesday, October 13, 2026 at 8:59 AM EDT · AI, Products · Latest · Tier 1 — Major_

![Character.AI files for Chapter 11 as platform faces possible shutdown — Primary](https://techcrunch.com/wp-content/uploads/2025/04/Screenshot-2025-04-22-at-1.24.23PM.png?resize=1200,672)

Character.AI has filed for Chapter 11 bankruptcy after lawsuits and difficulties scaling its chatbot platform, TechCrunch reported. A court document lists assets and liabilities between $50 million and $100 million. The company also agreed to sell some assets to Disney for $20 million and grant a non-exclusive perpetual technology license.

CEO Colin Adams said the platform would continue operating during the court-supervised sale process, expected to close in late November or early December. He said there is no bid that would secure continued platform operations; without one, Character.AI will wind down.

## Sources

- [TechCrunch](https://techcrunch.com/2026/10/13/just-5-years-in-interactive-chatbot-platform-character-ai-files-for-bankruptcy/)

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Canonical: https://techandbusiness.org/newswire/Ok9fU3kZGXke_0i0Xdpg04
Published: 2026-10-13T12:59:17.728Z
Story chronology: 2026-10-13T12:23:42.000Z
Retrieved: 2026-10-13T15:44:54.742Z
Publisher: Tech & Business (techandbusiness.org)