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moves money Ars Technica October 19, 2026

Disney found a way to buy Character.AI without buying its lawsuits

Disney found a way to buy Character.AI without buying its lawsuits
AI Summary

This week, Character.AI declared bankruptcy. While some saw the fall of a chatbot platform as a harbinger for the industry , court filings indicate that the decision was actually a key part of a deal that has let Disney hire most of Character.AI’s staff—including its now former CEO Karandeep Anand —potentially acquire most of Character.AI’s technology , and avoid the beleaguered startup’s many legal liabilities and obligations. In the past few years, Character.AI has faced multiple private lawsu

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