Character.AI begins a voluntary Chapter 11 process to pursue a court-supervised sale of the company

Character.AI announced on its blog that it has initiated a voluntary Chapter 11 bankruptcy process to facilitate a court-supervised sale of the company. According to the case website of its claims and noticing agent, Character Technologies, Inc. d/b/a Character.AI filed a voluntary petition for relief under Chapter 11 on October 12, 2026, and the case is administered under Case No. 26-11603 in the United States Bankruptcy Court for the District of Delaware. The company says it hopes the sale process will yield a proposal that allows the platform to keep operating, that the platform will be wound down if no such bid is available, and that it currently expects the sale process to be complete by the end of November or perhaps early December 2026. It says the platform remains up and running at this time. The outcome of the sale is not yet known.12

USASI. (2026, October 13). Character.AI begins a voluntary Chapter 11 process to pursue a court-supervised sale of the company. United States of America Superintelligence. https://unitedstatesofamericasuperintelligence.com/news/character-ai-begins-chapter-11-sale-process/

@misc{usasi_news_character_ai_begins_chapter_11_sale_process,
  author = {{USASI}},
  title = {Character.AI begins a voluntary Chapter 11 process to pursue a court-supervised sale of the company},
  year = {2026},
  month = oct,
  howpublished = {\url{https://unitedstatesofamericasuperintelligence.com/news/character-ai-begins-chapter-11-sale-process/}},
  note = {United States of America Superintelligence. Last updated 2026-10-13}
}