Character.AI Bankruptcy: $2.7B to Disney's $20M Fire Sale
💸 From $2.7 Billion to a $20 Million Fire Sale: The Shocking Fall of Character.AI Co-produced by Daniel Aharonoff and DigitalDan As the chief editor of mindburst.ai, I've watched the AI boom produce its fair share of wild plot twists — but this one might take the cake. On Monday, October 12, 2026, Character.AI, one of the very first breakout stars of the generative AI boom, filed for Chapter 11 bankruptcy. And get this: the company that Disney was threatening with legal action about a year ago is now Disney's buyer of choice, scooping up the chatbot company's assets for a mere $20 million. Let's put that in perspective. Just two years ago, Google paid roughly $2.7 billion to license Character.AI's technology. Now Disney is buying what's left for less than one percent of that. What happened? And what does it mean for the millions of people who chat with AI characters every day? Let's break it all down. What's the Big Deal? Character.AI Bankruptcy Exp...
