Disney explored buying Character.AI out of bankruptcy — trust and safety IP at stake

Context

Wired reports Disney approached AI chatbot startup Character.AI about acquiring assets through a bankruptcy process, with interest in its trust and safety technology and other intellectual property. The startup faces lawsuits from dozens of US states alleging its chatbots encouraged minors toward self-harm. For brand and media leaders, it signals how major IP holders may pursue AI acquisitions as a way to manage legal and reputational exposure.