Short answer: not yet. Character.AI is still running, but its parent company filed for bankruptcy to sell the business, and it has said the platform will be wound down if no workable buyer is found. Here is what is known, what isn't, and what to do with your chats and characters in the meantime.
Where things stand (checked November 2, 2026)
- October 12, 2026: Character.AI announced a voluntary Chapter 11 bankruptcy process to sell the company under court supervision.
- The app: the company says the platform "remains up and running".
- Timeline: Character.AI expects the sale to finish by the end of November or perhaps early December 2026.
- If no buyer: the company says the platform will be wound down.
- Proposed dates: case documents list bids due November 20, an auction on November 23 if rival bids arrive, and a sale hearing on November 24. These can still move.
What Character.AI has said
In its own update, Character.AI said it had started a voluntary Chapter 11 process so the business could be sold under the supervision of a court. It said the platform remains up and running, that its privacy and security practices are unchanged, and that users can still export their data or delete their accounts through the app or the website.
Who is bidding
News reports say Disney made the opening bid: $20 million for a non-exclusive license to Character.AI's intellectual property. In a court sale, an opening bid like this sets a floor; other bidders can still make higher or better offers before the court approves a sale. Reports say Disney's bid doesn't include user data, and 40 state attorneys general have asked the court to protect consumer data in the sale.
That matters for users because a license to intellectual property is not the same thing as someone taking over the app and its community. Until a buyer for the platform itself is approved, nobody can say for sure whether Character.AI will keep running in its current form.
What could happen next
- A buyer takes over the platform. The app keeps running under new ownership. Terms, features and policies could change.
- Assets are sold or licensed separately. Parts of the business change hands, and the consumer app may not continue as it is.
- No workable bid. The company has said the platform will be wound down.
We'll update this page when the court approves a sale. Until then, treat any claim of a definite shutdown date as rumor.
What to do now: a five-minute checklist
- Request your data export. It can take 3 to 4 weeks to arrive, so start now. Step-by-step export guide.
- Copy the characters you made. Save each one's name, greeting, description and definition in a document.
- Save the chats you'd miss. Copy them into a document or save them as a PDF.
- Review your subscription. If you pay for Character.AI+, check how it renews in your app store or account settings.
- Read the new terms if there's a buyer. If the app changes hands, read what the new owner says about your data before you keep chatting.
If you're looking for somewhere else to go
Look for an app that lets you see and control what it remembers, export your data, and delete it. Our 10-point privacy checklist is a good place to start.
NuraMate is one option: an AI companion for adults on the web, with memories you can review, pin, correct or delete, a full data download from your account, and a Free plan with no card. You can paste your Character.AI character into the creator and pick up the story. Read more on our Character.AI alternative page.
Sources: Character.AI, "An update on Character.ai" (October 2026); reporting by CNN, CBS News and Bloomberg Law (October 2026). This page reports public statements and news coverage; it is not legal advice. NuraMate is not affiliated with Character.AI or Disney.
