Disney Offers $20M for Character.AI Technology Amid Controversy

In a bankruptcy proceeding that began yesterday, Disney has offered to purchase a non‑exclusive, perpetual license to certain intellectual property from Character Technologies, the company behind the chatbot Character. AI. The offer totals $20 million, according to a press release from Character Technologies that did not specify which assets Disney seeks. The move is notable because Disney had publicly criticized Character. AI in September 2025, accusing the chatbot maker of stealing content and harming children. Disney’s cease‑and‑desist letter also alleged that Character Technologies was weaponizing Disney characters in a manner that could damage the brand’s reputation. The acquisition could provide Disney with technology that it previously opposed, raising questions about the future use of the contested chatbot platform.