PersonaChat Get the app

Guide · Character AI status

Is Character AI Shutting Down?

No shutdown has been announced. On 2 November 2026 Character AI (c.ai) is still running while the company behind it tries to sell its assets in a court-supervised sale. The company says it will wind the platform down if nobody makes an offer that keeps it going, and no buyer for the app has been named so far.

Last checked: 2 November 2026, against the company's statement and the court docket. PersonaChat makes a rival app and has no connection to Character AI.

If you want a copy of your chats, request your data export now, because Character AI says it can take 3 to 4 weeks. Here's how.

Is Character AI still in business?

Yes, for now. In its own update, the company says the platform is up, all services are available and paid subscriptions are still active, with billing unchanged for now. It expects the sale to finish by late November or early December 2026. It also says that if no bid keeps the platform running, "the platform will be wound down". It gives no date for that.

Character Technologies, Inc., the company behind Character AI, filed for voluntary Chapter 11 on 12 October 2026 in the US Bankruptcy Court for the District of Delaware (case 26-11603). Chapter 11 lets a business keep operating under court supervision. Here it is being used to sell, license or dispose of all or substantially all of the company's assets.

Why did Character AI file for bankruptcy?

The company cites legal, regulatory and operational pressures. Reuters reports that it blamed lawsuits, regulatory probes, the high cost of AI talent and computing power, and an unprofitable business model, and that it was losing $8 million to $9 million a month. Its petition estimates both its assets and its liabilities at $50 million to $100 million.

Is Disney buying Character AI?

Not the app. Disney Worldwide Services is the opening, or "stalking horse", bidder at $20 million, and its offer is a non-exclusive, perpetual license to certain technology and intellectual property. Reuters reports that Disney doesn't plan to buy the chatbot platform or user data, including chat history, and that it hired 66 of the company's 86 employees before the filing. The filed agreement leaves out the consumer apps, the brand, domain names, finished models, training data, and users' data, messages and replies. The company has also told the court that Disney has no access to user data and isn't buying personally identifiable information.

A Disney win alone wouldn't settle the app's future, because the app isn't part of what Disney would get. Other bidders can still beat its offer, and any sale needs the court's approval.

What will happen to Character AI?

That depends on the sale, and nobody can say yet. There are three broad outcomes.

Someone buys the platform and keeps it running

The app would carry on under a new owner, who could change its features, prices and rules. No such buyer has been publicly named.

Nobody buys the platform and it winds down

This is what the company says will happen without a suitable bid. Its filings describe winding the platform down safely with help from Disney's transition services if a full platform sale isn't possible. In the update and the filings we read, we found no closing date, no notice period, and nothing on whether data exports would keep working during a wind-down.

Parts are sold separately

The company told the court it is marketing its assets together or separately, and that bidders can choose what they want. The technology could go to one buyer while other assets go elsewhere or stay unsold.

Dates to watch

The first four dates are from the company's 30 October notice, which shows them in brackets as proposed. The judge approved the bidding procedures at a hearing that day, Reuters reports. The signed order wasn't on the case docket when we checked on 2 November, so these dates could move.

What happens to my chats and characters?

For now they stay where they are. The company says your data remains under its Privacy Policy and that its privacy and security practices haven't changed.

No sale of user chats has been announced, and Disney's offer leaves them out. A different buyer could still bid for them. The Privacy Policy allows the company to disclose information during a sale of company assets, and the company has told the court it believes the policy permits the sale and transfer of user data in this case.

The US Trustee, part of the Justice Department, and a coalition of state attorneys general have asked for a consumer privacy ombudsman, an independent reviewer who would advise the court on what data can be sold and on what terms. The company says one isn't required but that it would agree under the right circumstances. At the 30 October hearing the judge encouraged the company to hire one without ordering it, according to Bloomberg as reported by Quartz. The states have also asked that everyone gets a chance to delete their data before any sale of it.

Nothing we've read says what would happen to your characters, chat history or account if the platform closed.

Is my subscription still active?

Yes, according to the company. It says billing is unchanged for now and that it will tell subscribers in advance if paid features change. If you'd rather stop paying, cancel wherever you subscribed. For the App Store or Google Play, that's in the store's subscription settings. We found no statement from the company about refunds.

Character AI isn't loading. Has it shut down?

No closure had been announced on 2 November, so a failed login or an error page is more likely to be a temporary outage. Character AI's help center points people to its community channels and Reddit for news of outages and maintenance. Any change to the platform's future should also appear in the company's update.

What's worth doing now

If you enjoy Character AI, there's no need to leave today. These steps cost little and help whichever way the sale goes.

  1. Request your data export. It's a built-in option in your account settings. Character AI says it can take 3 to 4 weeks and that the emailed link lasts 7 days, so a request made now could come back close to the end of the sale. Here's how to do it.
  2. Copy what the export may miss. Save the details of the characters you care about, your persona and your pinned messages somewhere of your own.
  3. Write a short recap of any story you want to continue. Note who's who, what has happened and what's unresolved. It will help in any app, including Character AI if it carries on.
  4. Hold off deleting your account until you have the file. Character AI says deletion is permanent, and we found nothing saying a pending export survives it.

If you're looking at other apps

We make one, so weigh this accordingly. PersonaChat is a text-first AI roleplay app for iPhone and iPad, with a running recap, Living Memory and a Lorebook on every plan, including the free one. It can't import your Character AI chats or read the export file. It has no voice calls, no Android or web version, and a much smaller character library. Our PersonaChat vs Character AI comparison says where each is stronger, and the other comparisons cover more apps.

Download PersonaChat on the App Store

4.4 on the App Store · Free to start · Premium from $4.99/week

Sources

Frequently asked questions

Is Character AI shutting down?

No shutdown had been announced as of 2 November 2026. Character AI is still running during a court-supervised Chapter 11 sale. The company says the platform will be wound down if no bid keeps it running, and it expects the sale to finish by late November or early December 2026.

Is Character AI bankrupt?

The company behind it, Character Technologies, Inc., filed for Chapter 11 bankruptcy protection on 12 October 2026. Chapter 11 lets a company keep operating under court supervision, and here it is being used to sell the business.

Why did Character AI file for bankruptcy?

The company cites legal, regulatory and operational pressures. Reuters reports that it blamed lawsuits, regulatory probes, the high cost of AI talent and computing power, and an unprofitable business model, and that it was losing $8 million to $9 million a month.

Did Disney buy Character AI?

No. Disney is the opening bidder at $20 million for a non-exclusive license to certain technology and intellectual property. The filed agreement leaves out the consumer apps, the brand, and users' data and chats. Other bidders can still beat the offer, and any sale needs the court's approval.

What happens to my Character AI chats?

For now they stay under Character AI's Privacy Policy, and the company says its practices haven't changed. No sale of chats has been announced and Disney's offer leaves them out, but the company has told the court it believes its policy permits the sale and transfer of user data in this case. If you want a copy, request the data export in your account settings.

Is my c.ai+ subscription still active?

Yes, according to the company. It says billing is unchanged for now and that it will tell subscribers in advance if paid features change.

When will we know what happens to Character AI?

A sale hearing is proposed for 24 November 2026, and the company expects the sale to finish by late November or early December 2026. These dates could move.

Is Character AI down or shut down?

No closure had been announced on 2 November 2026, so a failed login or an error page is more likely to be a temporary outage. Character AI's help center points people to its community channels and Reddit for news of outages and maintenance.

Do I need to leave Character AI now?

No. The service is running and the outcome isn't known. It's still worth requesting your data export and keeping a copy of the characters and stories you care about.