Disney offers $20M for Character.AI technology license

Disney has submitted a $20 million offer to acquire a license for technology underpinning the chatbot service Character.AI. The bid is part of a bankruptcy proceeding involving the company, according to a Character.AI filing. The offer is for a "non-exclusive perpetual license" to certain intellectual property owned by Character Technologies.

This move is notable given Disney's public stance against Character.AI in September 2025. At that time, Disney sent a cease-and-desist letter accusing Character Technologies of misusing Disney characters in a manner that could harm its brand long-term. Disney was among several entities that had previously criticized Character.AI for issues including alleged content theft.

Details regarding the specific assets Disney wishes to license have not been fully disclosed. Character.AI has faced scrutiny over its AI's capabilities and the content it produces.

The offer suggests Disney may seek to leverage Character.AI's technology for its own initiatives, despite the prior conflict between the two companies.