Character.AI pursues a bankruptcy sale while its platform stays online
Character.AI says its service remains available during the Chapter 11 sale process. Its future depends on a viable bid.
Published by NaughtyPicks
Announcement: October 12, 2026
Character.AI announced a voluntary Chapter 11 bankruptcy process on October 12 to pursue a court-supervised sale. Its official update says the platform remains available while that process continues.
What happens to chats and subscriptions?
The company says subscriptions remain active and billing is unchanged for now. Users can still export their data or delete an account through the app or website.
Character.AI expects the sale process to finish around the end of November or early December 2026. That is the company's expected timetable, rather than a confirmed completion date.
A sale is still the deciding factor
The announcement says continued operation depends on receiving a workable proposal. If no suitable bid emerges, the platform will be wound down. A shutdown date has not been announced in that update.
For users with long-running character conversations, the immediate issue is preserving access to their own material while the company's future is unresolved.