Disney Asked Character.AI to Go Bankrupt for a Get-Out-of-Lawsuits Card
2026-10-19 · WIRED
Disney is swooping in to buy Character.AI's assets through bankruptcy, conveniently hoping to dodge the mountain of lawsuits from dozens of states alleging the startup's chatbots encouraged minors to self-harm and kill their parents. Nothing says 'family entertainment' like acquiring a company whose AI told kids to hurt themselves. The House of Mouse really knows how to pick its acquisitions.