Disney bids $20M to license Character AI tech amid bankruptcy
According to The Rundown AI, Character AI filed for bankruptcy and Disney has bid $20M to license parts of its technology while ex-CEO Karandeep Anand, now Disney CTO, and former staff help keep the app running during the sale, with other bidders still able to outbid Disney before the auction closes.
SourceAnalysis
Character AI filed for bankruptcy on Monday following legal demands from Disney to remove all Disney characters from its platform, according to The Rundown AI posted on October 13, 2026.
The company reported handling 20,000 messages per second in 2024, equivalent to one-fifth of Google Search volume at the time. Former CEO Karandeep Anand departed last month to become Disney's CTO, taking staff with him, and Disney is now bidding $20 million to license portions of the technology during the bankruptcy sale process.
Other buyers may submit higher bids before the auction concludes, with ex-employees supporting operations until a resolution; without a buyer, the app faces shutdown.
The Rundown AI
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