Is Character.AI shutting down?

Timeline

• October 12, 2026Character Technologies, Inc. files a voluntary Chapter 11 case in the U.S. Bankruptcy Court for the District of Delaware (case 26-11603) to run a court-supervised sale.
• October 12, 2026Disney is named the "stalking horse" bidder: $20 million for a non-exclusive license to certain intellectual property, plus transition services. It is not a deal to take over the app. Other bidders can top it.
• October 13, 2026Court filings say the company burns $8–9 million a month and that the sale must close by December 17, 2026 under the Disney agreement.
• Late November – early December 2026Expected completion of the sale. This is when we'll know whether the platform continues.

Sources: Character.AI's announcement (blog.character.ai), its press release on Business Wire, and the court docket administered by Stretto. We'll update this page as the case moves.

What happens to my chats and characters?

For now, nothing. The app works, chats are still there and subscriptions are still billed. Character.AI says your data stays covered by its privacy policy.

After the sale, it depends on the buyer. If someone buys the platform, your account will probably move with it. If nobody does, the platform will be wound down, and the company hasn't said what happens to stored chats then. Don't count on them staying accessible.

What to do today

1. Make a backup you control. On a computer, the free backup extension saves every chat, swipe and character in minutes.
2. Request the official export as well (Profile → Settings → Legal & Privacy → Export Data). It can take 3–4 weeks, and the link expires after 7 days.
3. Don't delete your account until you have your files and have checked they open.
4. Check your subscription. Billing continues. App Store and Google Play subscriptions are cancelled in those stores, not in Character.AI.
5. Decide where your characters go next. See Character.AI alternatives that import your characters.

Questions