Character.ai files Chapter 11 to seek court-supervised sale

Character.ai files for Chapter 11 bankruptcy

Character.ai has voluntarily entered Chapter 11 bankruptcy and is seeking to sell all or most of its assets under court supervision. The platform is still running, subscriptions remain valid and billing is unchanged for now, and its data privacy and security measures stay as they are. The company expects the sale process to finish in late November or early December 2026; if no buyer steps up to keep the platform running, it will shut down.

Why it matters: Character.ai is going through bankruptcy to sell itself, and the platform only survives if a buyer commits to keeping it running.