Character.AI Bankruptcy and Shutdown Timeline Explained

Is Character.AI shutting down or going away?

Not yet. In a blog post dated October 12, 2026, the company wrote that the platform “remains up and running” and that you can “continue to access all services at this time.”

The same post says what happens if no buyer steps forward: “If such a bid is unavailable, however, the platform will be wound down.” A bid is an offer to buy. The company says it hopes the sale will produce “an actionable proposal that will allow continued operations of the Character.ai platform.”

The company expects the court process to be “complete by the end of November or perhaps early December 2026.” Neither the blog post nor the court dates below give a shutdown date. The latest outside date in the court papers is December 17, 2026.

So the answer to “will it still work next month” and “is it going away in December” depends on the sale. No source we used says more than that.

Chapter 11 bankruptcy explained for platform users

Chapter 11 is part of U.S. bankruptcy law. The U.S. Courts website says it “generally provides for reorganization, usually involving a corporation or partnership,” and that the business “may continue to operate.” Selling assets outside the ordinary course of business needs the judge’s permission.

Here the company asked the court to supervise a sale. Its blog says it began the case “to pursue a court-supervised sale of all or substantially all of our assets.” The case is Case No. 26-11603 in the U.S. Bankruptcy Court for the District of Delaware. The case website, run by the company’s claims and noticing agent, gives October 12, 2026 as the petition date.

The company’s court papers say it does not believe current and past platform users are creditors to whom notice must be provided. They say it plans to publish notice on the claims agent’s website and on its own blog, with links on its community engagement pages or its platform. They also say that emailing all current and past users, about 163 million, would be cost-prohibitive (Dkt. 8, paragraph 21 and note 7, page 10).

In plain words: do not wait for an email. Check this page, the company’s blog and the case website.

Auction dates, sale deadlines and potential buyers

All times are Eastern Time. “Dkt.” is the number of a filing on the court docket. The bid, auction and sale dates are the ones in the company’s bidding procedures motion (Dkt. 15). The court can change them when it decides that motion, and the company can extend the bid deadline (Dkt. 15, page 26).

Who is buying Character.AI? No sale has been approved. The company’s bidding procedures motion (Dkt. 15) asks the court to approve Disney Worldwide Services, Inc. as the “stalking horse purchaser” for what the motion calls the “Disney Target Assets.” It also asks to let the company name more stalking horses. A stalking horse is a first bidder chosen in advance. Its offer is the starting point, and other bidders can try to beat it at the auction.

This guide does not describe individual bids beyond what the filings say, and it has not summarized the motion’s terms, so it cannot say which assets the Disney offer covers. If you want to know whether chats or user data are part of any deal, read the motion and its exhibits on the case docket. Other bids are due on November 20, and the auction follows on November 23.

What happens to app access and stories

For now, the company says access continues and paid subscriptions stay active, with billing “unchanged for now.” It also says that if the service changes in a way that affects paid features, it intends to notify subscribers in advance.

If a buyer is found, what changes is up to the buyer and the court. If no bid lets the platform continue, the company says it will be wound down.

The company’s post talks about the platform as a whole. It does not list Stories or other features one by one, and we found no source saying the app was removed from an app store.

What to do now

These steps cost nothing and keep your options open.

1. Request your data export today. Character.AI says it takes 3 to 4 weeks. See how to export your chats.
2. Save the chats you care about most by hand while you wait: copy the text or take screenshots.
3. Do not delete your account until your export has arrived. Deletion is permanent. See delete now or wait.
4. Read what the company’s privacy policy says about a sale: what happens to your chats in bankruptcy.
5. Look at where people are moving in the main guide, and check each service’s age rule and privacy policy yourself.

Because an export takes 3 to 4 weeks, a request made after about November 19 may not arrive before December 17.

Questions and answers

Is Character.AI shutting down?

Not yet. The company says the platform remains up and running. It also says the platform will be wound down if no bid lets it continue. No shutdown date is given in the sources we used.

Will Character.AI still work next month?

The company says it works now and expects the court process to finish by the end of November or in early December 2026. What happens after that depends on the sale.

What is the court hearing on October 30?

It is a hearing on the bidding procedures, which are the rules for how bids are made and compared. It is set for October 30, 2026 at 10:00 a.m. Eastern in Wilmington, Delaware.

When is the wind-down date?

None has been announced in the sources we used. The latest outside date in the court papers is December 17, 2026.

Who is buying Character.AI, and what does the Disney bid mean?

No sale has been approved. The company’s motion asks the court to approve Disney Worldwide Services, Inc. as stalking horse purchaser for the “Disney Target Assets,” which makes it the first bidder other bidders can try to beat. Bids are due November 20, 2026 at 5:00 p.m. Eastern, the auction is November 23 and the sale hearing is November 24. We have not summarized what the Disney assets include.

What does a bid mean for my chats?

A bid is an offer to buy some or all of the company’s assets. The privacy policy says the company may disclose information in a sale of company assets. See what happens to your chats in bankruptcy.

Related guides

• What Happens to Your Character.AI Chats in Bankruptcy
• How to Export Your Character.AI Chats and Conversations
• Should You Delete Your Character.AI Account Now or Wait?
• Character.AI Plus Subscriptions and Refunds in Bankruptcy

This guide is not affiliated with Character Technologies, Inc. Corrections, and requests from services to be listed or changed, go to hello@castmanor.com.