Chapter 11 since 12 Oct 2026, a $20M Disney bid and a possible wind-down. What it means for you and how to save your chats.
#2
#3
#4TL;DR (checked 26 October 2026)
- Character Technologies filed for Chapter 11 in Delaware on 12 October 2026 (case 26-11603). The app keeps running during a court-supervised sale.
- Disney is the opening bidder at $20 million for a non-exclusive licence to selected IP, not for running the app. The sale should close in late November or early December 2026.
- Reports say the service will be wound down if no buyer keeps it running. Subscriptions stay active meanwhile.
- Character.AI says you can export your data in the app or on the website. Do it now, before the sale closes.
Disclosure: this site is made by the naughti.ai team. naughti.ai is one of the apps compared here, and I say where it fits and where it does not. Every price comes from the vendor’s own page or a named source, checked 26 October 2026. Adults 18+ only; all characters in these apps are AI and fictional.
Chapter 11 lets a company keep operating while it reorganises or sells assets under court supervision. Character.AI is using it to run a sale. CEO Colin Adams said the board chose a court-supervised sale as the best way to maximise value for stakeholders. Court papers put assets and liabilities each between $50 million and $100 million.
| Question | Answer (checked 26 October 2026) | Source |
|---|---|---|
| When was it filed? | 12 October 2026 (some outlets say 13 October) | TechCrunch, Law Commentary |
| Which court? | US Bankruptcy Court, District of Delaware, case 26-11603 | Law Commentary |
| Who is bidding? | Disney Worldwide Services, $20M stalking-horse bid for a perpetual non-exclusive IP licence | TechCrunch |
| Is the app still running? | Yes, during the sale | Character.AI update |
| When does the sale close? | Expected late Nov or early Dec 2026 | TechCrunch |
| Could it shut down? | Yes, if no viable bid keeps it running | Law Commentary |
The filing came after a year of lawsuits and regulatory pressure. Character.AI settled the Setzer lawsuit and related cases in January 2026, was sued by Kentucky’s attorney general the same month and by Pennsylvania in May 2026. It had already ended open-ended chat for under-18s on 25 November 2025 and added age checks. The filing is meant to help resolve these claims.
While the app runs, your chats and characters stay where they are. The risk is what happens after the sale. Coverage of the filing notes that Character.AI’s privacy policy allows user information to be shared in a sale of company assets, and that existing data practices stay in place during the sale.
In practice: treat the next few weeks as your window to save anything you would miss.
| You used Character.AI for | Move to | What carries over |
|---|---|---|
| Your own characters | SpicyChat, Candy AI, OurDream AI | Paste the definition and greeting into a new character |
| Story roleplay | naughti.ai | You start one of its written scenarios instead |
| Free casual chat | SpicyChat, Janitor AI | Recreate characters by hand |
| Adult roleplay (blocked on Character.AI) | naughti.ai, Candy AI, SpicyChat | Nothing to import: these allow what Character.AI did not |
See the full comparison of Character AI alternatives or the free options.
I will update this page when the sale closes.
I accessed all sources on 26 October 2026.
Adults 18+ only. All characters in the apps on this page are AI and fictional. This site is not affiliated with Character.AI or Character Technologies, Inc.
Six adult apps compared on rules, real cost, memory and privacy.
Why Character.AI blocks adult chat and which apps allow it.
Rules, format and price head to head.
Character Technologies, the company behind Character.AI, filed for Chapter 11 in the US Bankruptcy Court for the District of Delaware on 12 October 2026. Chapter 11 is a reorganisation and sale process, not an immediate shutdown. Court papers put assets and liabilities each between $50 million and $100 million.
It is possible but not decided. The app stays live during the sale, which is expected to close in late November or early December 2026. Disney’s $20 million bid is for a non-exclusive licence to selected IP, not for running the app, and reports say the service will be wound down if no buyer keeps it running.
For now, nothing changes: chats and characters stay in your account while the app runs. Coverage of the filing notes that the privacy policy allows user information to be transferred in a sale of assets. If your chats matter to you, save copies now rather than waiting for the outcome.
Yes. Reports on the filing say subscriptions remain active while the service runs. Character.AI does not refund web purchases according to third-party guides, so think twice before renewing a yearly plan ($94.99) during the sale. A monthly plan ($9.99) limits what you could lose.
Character.AI says you can export your data through the app or the website, and delete your account there too; its 12 October 2026 update confirms this. Export your data and keep your own copy of the conversations and characters you care about most before the sale closes in late November or early December 2026.
Disney is the stalking-horse bidder, offering $20 million for a perpetual non-exclusive licence to selected IP and transition services through former Character.AI staff it has hired. Other bidders can top the offer during the court-supervised sale.
The app works, and the filing does not change its safety features or content rules. The risks are about the future: what a buyer does with user data and whether the service continues. Avoid sharing details you would not want transferred, and keep copies of anything you care about.
Apps that let you build characters, such as SpicyChat, Candy AI and OurDream AI, accept a character you recreate by pasting its description and greeting. naughti.ai works differently: you pick one of its written scenarios instead of importing a character. Compare them on the main page.
Not decided. Character.AI’s own update of 12 October 2026 says the platform remains up and running during the sale and will be wound down only if no viable bid emerges. The sale is expected to finish by the end of November or in early December 2026.
On 12 October 2026 Character Technologies started a voluntary Chapter 11 process to sell the company under court supervision, and a notice of commencement was filed on 15 October. Disney made a $20 million opening bid for an IP licence. The app, subscriptions and billing continue as before for now.
Character.AI’s 12 October 2026 update does not mention removing characters. It says the platform keeps running and that privacy and security practices are unchanged. If your own characters matter to you, save their definitions and greetings now.
There is no ban. Character.AI faces lawsuits and state actions, including from Kentucky and Pennsylvania in 2026, and the Chapter 11 process is meant to help resolve them. The open question is whether a buyer keeps the app running.
Your chats are stored in your Character.AI account, and coverage of the Chapter 11 filing notes that its privacy policy allows user information to be transferred in a sale of company assets. Character.AI’s privacy page did not load for me, so I cannot quote its staff-access rules. If a chat is sensitive, export or delete it before the sale closes.
Editor, Character AI Alternatives
Maurice Groeneveld is the editor who writes this site for the naughti.ai team. I compare AI roleplay and companion apps for adults on facts you can check: the vendor’s own pricing pages, terms of service, privacy policies, age-check rules, company registers and public reviews. I note the date I checked every figure and re-check them monthly. I do not claim tests I have not run, and I say plainly where naughti.ai is not the right fit.
No filter, no blank chat, no scene cut off mid-sentence. On naughti.ai adult roleplay is the point: about 50 branching scenarios, about 37 characters and pre-made video moments when things heat up. Made by the team behind this site.
Adults 18+ only. All characters are AI and fictional.
