Character.AI is in Chapter 11, and its assets go to auction on December 1. For users, the biggest question isn't who buys the company. It's what happens to years of private chats.
The answer isn't settled. Disney's $20 million opening bid is for a non-exclusive license to some intellectual property. It doesn't include the app, the brand or user data. What happens to user data depends on any other bids and on the court.
The court approved the bidding procedures on November 4. Reported terms include a $700,000 break-up fee for Disney and a $21.7 million minimum for competing bids. Bids are due November 24, the auction is December 1 and the sale hearing is December 3–4.
On Caracas Dream, your chats are never shown to other users, charges show as "Seven Rivers Tech," and our privacy policy sets out what we keep.
It's not settled. Disney's bid excludes user data, but other bids and the court will decide.
A neutral official a bankruptcy court can appoint to review the privacy impact of selling customer data. The U.S. Trustee asked for one on October 27.
December 1, 2026, with the sale hearing on December 3–4.
Request your export now, and delete any chats you don't want transferred if you can.