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Rewritten from Ars Technica • • 1 min read
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Disney offers $20 million for Character.AI technology in bankruptcy proceeding

Disney has offered $20 million to acquire certain technology from Character.AI during its bankruptcy proceedings, seeking a non-exclusive license for specific intellectual property. This offer comes after Disney previously criticized Character.AI for content theft and potential harm to its brand.

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Disney Character.AI

<p>In a bankruptcy proceeding that began on October 12, 2026, Disney has proposed to purchase certain technology from Character.AI, which has faced controversy. Disney is offering $20 million for a "non-exclusive perpetual license" of specific intellectual property from Character Technologies, according to a press release from the chatbot maker that did not specify which assets Disney is interested in.</p><p>This development follows Disney's previous criticism of Character.AI. In September 2025, Disney publicly condemned Character.AI for allegedly stealing content and endangering children, sending a cease-and-desist letter that accused Character Technologies of using Disney characters in a manner that could harm its brand in the long term, as reported by Axios.</p>

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Language Analysis

Loaded-language score 30/100
wirepublicmainstream flavoredpartisanadvocacy
Inflammatory language 10/100

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  • ✕ loaded language: 'plagued'

Original vs. Neutral

Original Headline

Disney offers $20M for Character.AI’s scandal-plagued chatbot tech

Neutral Headline

Disney offers $20 million for Character.AI technology in bankruptcy proceeding