Character.AI Is Bankrupt: What Happens to Your Bots?

According to The Verge, Character.AI has filed for Chapter 11 bankruptcy protection in the US, listing liabilities between $50 million and $100 million. The pioneer chatbot startup is negotiating a $20 million asset sale to Disney, which recently hired Character's former CEO Karandeep Anand.

What happens to your active chats and subscriptions?

The company stated that its platform and paid subscriptions will keep running while the sale process moves forward. Management expects the transition to wrap up by late November or early December. However, if a suitable buyer does not step in, the entire service will be wound down.

How to protect your custom bots and data

If you rely on custom characters or chat logs on the platform, you need to act immediately before access changes. Export your critical prompts, character definitions, and chat histories manually. Do not wait for an automated migration tool that may never arrive.

Is it worth keeping your paid subscription?

With liabilities reaching up to $100 million and the core talent already depleted by previous acquihires, keeping a paid subscription active carries high risk. Unless you need the service for immediate day-to-day tasks over the next few weeks, cancel your plan to avoid unexpected charges if the platform shuts down.