Character.AI sale: bids due 24 November, auction on 1 December

Nov 12, 2026
A court set the timeline for selling Character.AI's assets, while privacy experts warn about chat logs from more than 20 million users.

The sale of Character.AI's assets now has fixed dates. On 4 November the Delaware bankruptcy court approved the rules for the sale, the company said in a .

Bids for any of the company's assets are due by 24 November. Objections to the sale must be filed by 18 November. An auction follows on 1 December, and the court will hold the sale hearing on 3 and 4 December. Disney stays the first bidder for a license to some of Character.AI's technology and other assets, and others can try to outbid it.

The open question is the chat data. Character.AI holds chat logs from more than 20 million users, and more than 2 million accounts belong to minors, . Disney's $20 million bid leaves the chat logs out. Privacy experts told Bloomberg Law the data is likely already built into the models Disney wants to license, and that it cannot simply be deleted while state attorneys general investigate the company. The judge has said Character.AI should hire a privacy ombudsman to review the deal.

A judge let the sale go ahead in late October despite objections from US states.

Part of
Character.AI bankruptcy Follow the whole story

We hope you enjoyed this article

Consider subscribing to one of our newsletters like AI Policy Brief or Daily AI Brief.

Also, consider following us on social media:

AI Safety & Regulation AI Brief AI Brief (X)
Free newsletter

AI Policy Brief

Weekly report on AI regulations, safety standards, government policies, and compliance requirements worldwide.

Guide
23 AI meeting assistants for financial advisors

23 AI meeting assistants for financial advisors

What each one captures, what it keeps and which records it changes, from standalone apps to the AI built into advisor CRMs.

Whitepaper

Tensordyne Napier: What If One Rack Could Do the Work of Nine?

Tensordyne

This Tensordyne whitepaper presents Napier, an inference-focused AI processor and rack-scale system based on the company’s TDN Math logarithmic number system. It examines infrastructure requirements for large mixture-of-experts and agentic models, compares major inference architecture approaches, and details the TDN AIP processor, TDN72 pod, TDN Link fabric, and Napier Ultra configuration. The paper reports simulation-based performance, cost, and accuracy-validation results, including Tensordyne’s projected comparison of one Napier rack with a nine-rack Nvidia Rubin plus Groq deployment; the chip is reported as taped out and in fabrication.

Read more

You may also like

Free, six days a week

Daily AI Brief: the AI news that matters, in your inbox.