---
type: "post"
id: "the-ai-app-that-triggered-kids-safety-fears-e36423"
slug: "the-ai-app-that-triggered-kids-safety-fears-e36423"
title: "The AI app that triggered kids safety fears will sell assets to Disney"
description: "Character.AI has filed for Chapter 11 protection in the US Bankruptcy Court in Delaware and said it is selling all of its assets through a court-supervised process, according to The Washington Post."
retrieval_nugget: "Character.AI has filed for Chapter 11 protection in the US Bankruptcy Court in Delaware and said it is selling all of its assets through a court-supervised process, according to The Washington Post."
published_at: "2026-10-23"
updated_at: "2026-10-23"
record_date: "2026-10-23"
date_kind: "published_at"
topics: ["ai-business-models","ai-security"]
entities: ["Character.AI","Disney","US Bankruptcy Court in Delaware","Kentucky Attorney General"]
related_patterns: []
novelty_label: "same_event"
what_changed: "Same event as Character.AI files for bankruptcy, will sell some assets to Disney for $20 million"
prior_refs: ["memory:d70f0e80-6a90-8045-a441-e002abc9e627"]
source_url: "https://www.washingtonpost.com/technology/2026/10/13/ai-app-that-triggered-kids-safety-fears-will-sell-assets-disney"
source_urls: ["https://www.washingtonpost.com/technology/2026/10/13/ai-app-that-triggered-kids-safety-fears-will-sell-assets-disney"]
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stable_id: "post:the-ai-app-that-triggered-kids-safety-fears-e36423"
status: "published"
visuals: []
editor: {"role":"editor","name":"Andrey Reshetnikov","profile":"https://newruntime.com/owner-profile.md","profile_json":"https://newruntime.com/owner-profile.json","same_as":["https://www.linkedin.com/in/reshetnikov1/","https://t.me/lapetuse"]}
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---

# The AI app that triggered kids safety fears will sell assets to Disney

## Retrieval answer

Character.AI has filed for Chapter 11 protection in the US Bankruptcy Court in Delaware and said it is selling all of its assets through a court-supervised process, according to The Washington Post.

Character.AI has filed for Chapter 11 protection in the US Bankruptcy Court in Delaware and said it is selling all of its assets through a court-supervised process, according to The Washington Post.

Disney has agreed to pay $20 million to license some Character.AI intellectual property. Character.AI said it will consider higher or better offers. Disney had previously alleged unauthorized use of its copyrighted characters by the startup, while more recently it hired Character.AI's chief executive and other staff.

The Character.AI platform remains online, a company spokesperson told the Post. The report says the company has settled two lawsuits alleging teen suicides after prolonged app use, while Kentucky has a separate lawsuit alleging that its bots encouraged self-harm. The source does not establish that Disney will acquire Character.AI, that its proposed licence will close, or the final terms of any asset sale.

Source: https://www.washingtonpost.com/technology/2026/10/13/ai-app-that-triggered-kids-safety-fears-will-sell-assets-disney

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