Disney offers $20M for Character.AI’s scandal-plagued chatbot tech
Ars Technica Ashley Belanger ● Covered by 6 sources
Disney wants Character.AI’s chatbot tech in bankruptcy court, offering $20M for a license. That’s awkward after Disney publicly blasted the company for using Disney characters in harmful ways.
Based on reporting by Ars Technica, Ashley Belanger — read the original for the full story.
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Disney has turned up in Character.AI’s bankruptcy case with a bid to license some of the startup’s technology. The offer, filed as the proceeding kicked off yesterday, is for $20 million and would give Disney “a non-exclusive perpetual license” to certain intellectual property tied to Character Technologies, the company behind Character.AI.
The filing doesn’t say exactly which assets Disney wants, and the company’s press release was just as vague. But the money and the wording make one thing clear: Disney is not trying to buy the whole thing. It wants access, not control.
That makes the timing especially odd. In September 2025, Disney was one of the loudest critics of Character.AI, accusing it of stealing content and harming kids. The company also sent a cease-and-desist letter, saying Character Technologies was weaponizing Disney characters in a way that could hurt the brand long term, according to Axios.
So now the same company that attacked Character.AI’s behavior is willing to pay for some of its tech. That’s not exactly a moral about trust. It’s a reminder that in Silicon Valley, outrage and acquisition appetite can live in the same spreadsheet.
My take — AI-written commentary, not fact-checked reporting
Disney’s move is classic corporate pinching of the nose while reaching for the checkbook. The industry loves to denounce AI products for copyright messes and kid-safety chaos, then circle back when there’s useful code on sale. Open or closed, the rule is the same: principles get very flexible once the asset is cheap enough.
Read more about this at: Ars Technica