Character.AI Files for Bankruptcy; Disney Bids $20 Million

The collapse from a billion-dollar valuation to a $20 million bid is the real story here: it suggests the market is pricing Character.AI's technology and user base as salvage rather than as a going concern, even after a fresh model launch. Disney's interest points to where the residual value sits — branded characters and audience engagement, not the underlying AI. What remains unclear is whether any competing bid emerges in the Delaware process, and whether the grief resources signal a user base whose loyalty outlasts the product itself.