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Tech Times, Character.AI bankruptcy puts intimate chats of 21M users on auction block, 40 AGs warn

1 record was read from this source, dated 15 Oct 2026.

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Last checked 15 Oct 2026

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Record	Kind	As stated	Dated
Character.AI filed for Chapter 11 on 12 October 2026 to sell all or substantially all assets; Disney's $20M stalking-horse bid is a non-exclusive licence to certain IP and claims and, per the reporting, excludes the app, brand, user data and conversation logs, which stay in the estate. A Kentucky complaint attached to a 40-state AG filing (Dkt. 33) counts 21.6 million US accounts by March 2025, 2.1 million declaring an age under 18. Bid deadline 20 November, auction 23 November, sale hearing 24 November 2026. The AGs ask that no buyer may train AI on chat content beyond users' consent, so the logs are unlikely to be saleable as training data.	Supply fact	21.6 million US user accounts	15 Oct 2026

Character.AI filed for Chapter 11 on 12 October 2026 to sell all or substantially all assets; Disney's $20M stalking-horse bid is a non-exclusive licence to certain IP and claims and, per the reporting, excludes the app, brand, user data and conversation logs, which stay in the estate. A Kentucky complaint attached to a 40-state AG filing (Dkt. 33) counts 21.6 million US accounts by March 2025, 2.1 million declaring an age under 18. Bid deadline 20 November, auction 23 November, sale hearing 24 November 2026. The AGs ask that no buyer may train AI on chat content beyond users' consent, so the logs are unlikely to be saleable as training data.
Kind
Supply fact
As stated
21.6 million US user accounts
Dated
15 Oct 2026

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