Character.ai Bankruptcy: What Happens to Your Chats?

Illustration by OneAppleFall. Not the Character.ai app.

Researched October 20, 2026

Character.ai, one of the most popular AI chatbot apps, filed for Chapter 11 bankruptcy on October 12, 2026. [1][2][3] The app still works today, but its future now depends on a court-supervised sale that is expected to finish by late November or early December. [1]

If you use Character.ai, three questions matter: will the app keep running, what happens to your conversations and personal data, and should you save anything now? This guide answers each one from the company’s own statement, court-related reporting and the attorneys general who have stepped into the case.

Quick answer: Character.ai is still online, subscriptions are still active and billing has not changed. [1] If the sale does not produce a buyer who keeps the service going, the company says the platform “will be wound down.” [1] You can request a full export of your data now; the help centre says it can take 3 to 4 weeks, so it is worth asking early. [5]

This is a researched explainer, not legal or financial advice. The sale is ongoing and details may change; check Character.ai’s own update page for the latest position.

What happened

Character Technologies, the company behind Character.ai, started a voluntary Chapter 11 case in the US Bankruptcy Court for the District of Delaware to run a court-supervised sale of the business. [1][3] The company blamed “significant legal, regulatory and operational headwinds.” [2]

Those headwinds include lawsuits from families who said their teenagers died by suicide or harmed themselves after using the app. Character.ai and Google, which had a licensing deal with the company, agreed earlier in 2026 to settle several of those cases, and several US states have also sued. [2]

Disney has agreed to pay $20 million for a non-exclusive, perpetual licence to Character.ai’s intellectual property. [2] According to PPC Land’s reading of the case documents, the licence covers code and patents, while the app, the brand, user data, users’ inputs and outputs, and finished AI models stay in the bankruptcy estate for other bidders. [6]

Will Character.ai shut down?

Not yet, and possibly not at all. In its official update, the company says:

the platform “remains up and running, and you can continue to access all services at this time”; [1]
it hopes the sale will bring a proposal that keeps the service running; [1]
if no such bid arrives, “the platform will be wound down”; [1]
the sale is expected to be complete by the end of November or early December 2026. [1]

Disney is the “stalking horse” bidder, meaning its offer sets the floor for others. PPC Land reports a bid deadline of November 20 and names no second bidder for the app or user data so far. [6] That leaves the outcome open: a buyer could keep the app running, or it could close.

What happens to your chats and personal data?

This is the part that worries users most, because Character.ai holds a lot of personal material, from private conversations to the ages users give when they sign up. [4]

Question	What we know
Is my data protected today?	The company says data is still covered by its Privacy Policy and its privacy and security practices have not changed. [1]
Could my data be sold?	CBS News notes the Privacy Policy allows data to be disclosed in connection with a sale. [2] The company’s Safety Center promises users will “always have easy-to-use tools to access your data, delete your data, and delete your account.” [6]
Who is watching?	A bipartisan group of 40 US attorneys general, led by New York, filed a notice in the case on October 14 warning that any sale must protect users. [4]
What are they asking for?	Real age verification, removal of chatbots that pretend to be licensed professionals, limits on training AI on private chats without consent, working ad opt-outs, and a chance for users to access and delete their data before any sale. [4]
Is any of that guaranteed?	No. These are conditions the states are requesting; they say they may object to the sale procedures or ask for a consumer privacy ombudsman. [4]

New York’s attorney general says Character.ai has more than 20 million monthly users, including more than two million accounts registered by people who said they were under 18. [4] The chief executive’s sworn declaration in the same case reportedly puts monthly users at about 12 million, so treat any single number with care. [6]

What about my subscription?

Paid subscriptions remain active and billing is unchanged for now. The company says that if anything changes in a way that affects paid features, subscribers will be told in advance. [1] If you would rather not keep paying during the uncertainty, you can cancel through the store or account you subscribed with.

How to export your Character.ai data

Character.ai does not have a button to save a single chat as a file. Instead, you can request a full export of your account data, which is sent by email. These steps come from the company’s help centre, as reported on October 16. [5]

On the website

Open your Profile.
Select Profile Settings, then Account.
Choose Manage Account & Data.
Click Export Data. A message confirms an email will follow.

In the app

Open your Profile and tap the Settings icon.
Tap Legal & Privacy.
Tap Export Data. A “Success” banner confirms the request.

According to the help centre, the export “may take 3-4 weeks to complete,” and the download link in the email is valid for 7 days. [5] That timing is why it makes sense to ask now, well before the expected sale date, and to watch your inbox (including spam) so the link does not expire.

While you wait, you can keep readable copies of your favourite conversations by using your browser’s Print > Save as PDF option on the chat page, or by copying the text into a document. Some users also use unofficial browser extensions to download chats; these are not made by Character.ai, so read their permissions carefully before installing one.

If you would rather leave entirely, the company says you can delete your account through the app or website. [1] Export first if you want to keep anything.

Thinking of switching? What to check first

This situation is a reminder that chat histories with an AI companion live on someone else’s servers. Before you move to another app, check how easily you could leave it, too. A comparison published in August 2026 by AI Companion Guides found wide differences in whether these apps let you take your data with you: [7]

App	Can you export your chats? (per AI Companion Guides)
ChatGPT	Yes, from Data Controls in settings, sent by email
Claude	Yes, from privacy settings, sent by email
Pi	Yes, an instant “Download chat history” option
Replika	No in-app option; a copy can be requested by email
Kindroid	No in-app option; a copy on request, limited to once every 180 days
Chai	No tool found; the privacy notice promises a copy on request

Features change often, so confirm the current options in each app’s settings or privacy policy. Other things worth checking before you commit:

Age rules and safety features, especially if a teenager in your home uses these apps.
What the company does with your chats, including whether they are used to train AI models.
How to delete your account and data, and whether deletion is immediate.
Who owns the company and how it is funded, since that affects how long the service is likely to last.

If you or someone you know is struggling

Some Character.ai users rely on the app for company or emotional support, and losing it may be hard. If you are in distress, talk to someone. In the US, call or text 988 (Suicide & Crisis Lifeline). In the UK and Ireland, call Samaritans on 116 123. Elsewhere in Europe, 112 reaches emergency services, and local helplines are listed by your national health service.

Questions

Is Character.ai closing?

Not now. It is running during the bankruptcy, and the company hopes a buyer will keep it going. If the sale does not provide for continued operation, the platform will be wound down. [1]

When will we know?

The sale is expected to be complete by late November or early December 2026. [1][2]

Does Disney now own Character.ai?

No. Disney agreed to pay $20 million for a non-exclusive licence to Character.ai’s intellectual property. Reporting on the case documents says the app, user data and chat content are not part of that deal. [2][6]

How long does a data export take?

The help centre says up to 3 to 4 weeks, and the emailed link lasts 7 days. [5]

Can I delete my data before a sale?

You can delete your account through the app or website now. [1] The attorneys general are asking the court to give all users a chance to access and delete their information before any sale, but that has not been ordered. [4]