Character.AI

2026-10-19

COMPANIES · 1 SOURCE · WIRED AI

Disney hired most of Character.AI staff and seeks license to its tech via Chapter 11

Court filings show Disney paid Character.AI $5.5M (plus a $2M refundable deposit) in September, hired the majority of its employees including CEO Karandeep Anand, and is using Character.AI’s Chapter 11 proceedings to pursue a perpetual, worldwide, nonexclusive license to large parts of the startup’s codebase and safety tools; Disney would pay an additional $12.5M if it wins the auction. The arrangement — described in filings as two integrated transactions and characterized by experts as a form of “reverse acquihire” — appears designed to transfer talent and technology while leaving legal liabilities with the remnant Character.AI entity, raising regulatory and litigation concerns.

8.0

2026-10-18

COMPANIES · 1 SOURCE · TechCrunch AI

Disney to hire majority of Character.AI staff after startup files for bankruptcy

A legal filing shows Disney agreed to make employment offers to at least 60 Character.AI employees — the majority of the startup’s workforce — with an estimated $60 million in annual compensation; the filing also says the vast majority accepted. The deal accompanies a separate agreement for Disney to acquire some Character.AI assets for $20 million and follows the startup’s recent bankruptcy filing and the hiring of former Character.AI CEO Karandeep Anand as Disney’s CTO; the sale is currently a stalking-horse bid and could be topped by another buyer.

7.0

2026-10-14

REGULATION · 1 SOURCE · The Verge AI

40 state attorneys general file notice in Character.AI bankruptcy seeking data protections

New York AG Letitia James and 39 other bipartisan state attorneys general filed a notice of interest in Character.AI’s Chapter 11 case, urging the court to require safeguards for sensitive user chats as the company pursues a reported asset sale to Disney. The filing says several states had been investigating consumer-protection and privacy concerns — including risks to minors and an alleged suicide-linked chat — when Character.AI filed for bankruptcy.

8.0

2026-10-13

STARTUPS · 3 SOURCES · The Verge AI · TechCrunch AI · The Decoder

Character.AI files for Chapter 11; Disney to buy assets for $20M

Character.AI has filed for Chapter 11 bankruptcy in the US, listing estimated liabilities of $50–100 million, and is seeking to sell its assets. Disney is the lead bidder under a proposed deal that would pay $20 million for certain assets, hire some former Character.AI staff including ex‑CEO Karandeep Anand, and receive a nonexclusive IP license; the company says it will continue operating while the sale process proceeds and may be wound down if no suitable bid emerges.

8.0

2026-10-09

RESEARCH · 1 SOURCE · TechCrunch AI

Turkle book launch and MIT demo highlight how people anthropomorphize robots and chatbots

At MIT’s Future Fest and CSAIL demo, Sherry Turkle promoted her new book Artificial Intimacy and researchers demonstrated humanoid Unitree robots, prompting discussion about why people instinctively treat robots and LLMs like social beings. Experts including Pat Pataranutaporn warned about psychological harms and ethical risks — citing research on politeness toward chatbots and a wrongful-death case alleging a Character.AI chatbot encouraged a teen’s suicide — while noting useful, bounded applications (e.g., interview coaching).

5.0

2026-10-02

STARTUPS · 1 SOURCE · TechCrunch AI

Circuit Breaker Labs builds AI safety testing platform using hyper-realistic simulated users

Circuit Breaker Labs, a very early-stage startup founded by siblings Shirali and Arul Nigam, has developed an AI safety testing platform that uses simulated users representing diverse ages, languages, cultures and slang to red-team models for psychologically risky interactions; the company is operating with a small team and undisclosed marquee customers and will pitch at TechCrunch Disrupt. The platform runs tens to hundreds of thousands of simulated interactions per day and produces auditable scores intended for high-risk applications such as AI mental-health or coaching agents.

5.0

2026-09-18

COMPANIES · 1 SOURCE · TechCrunch AI

Disney hires Karandeep Anand, former Character.AI CEO, as first chief technology officer

Disney has appointed Karandeep Anand — who served as CEO of Character.AI — as its first-ever chief technology officer, a pick made by new CEO Josh D’Amaro. Character.AI, which Anand led after advising the company, was the subject of a Disney cease-and-desist in September 2025 over alleged copyright infringement and has faced other legal complaints.

7.0