Disney offers $20M for Character.AI tech it once attacked with cease-and-desist

Ars Technica AI · rss · 2026-10-14

In a bankruptcy proceeding that began yesterday, Disney offered $20 million for a non-exclusive perpetual license to certain Character.AI intellectual property. The twist: in September 2025 Disney publicly attacked Character.AI for stealing content and harming kids, sending a strongly worded cease-and-desist accusing the company of weaponizing Disney characters in ways that could damage its brand long-term.

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