In a bankruptcy proceeding initiated on October 12, 2026, Disney proposed a $20 million acquisition of a non-exclusive perpetual license for select Character Technologies intellectual property, including technology powering its chatbot platform. The offer follows a September 2025 dispute where Disney accused Character.AI of misusing its characters in chatbots deemed "sexually exploitative" and harmful to children, prompting the removal of all Disney-owned content from the platform. Disney’s renewed interest in AI partnerships emerged after its failed collaboration with OpenAI over Sora, leading the company to hire former Character.AI CTO Karandeep Anand as its first chief technology officer. The bankruptcy filing suggests Disney may acquire the chatbot technology or platform assets, potentially managed by current Character.AI employees, to integrate into products targeting its fanbase. However, the press release did not specify which assets Disney sought, leaving open the possibility of being outbid. Industry analysts note Disney’s strategic push to "get in the AI game" amid the sector’s growth, though the company has not clarified plans for using the technology in children’s products. The $20 million offer reflects a cautious approach amid Character.AI’s controversies and regulatory scrutiny.