Is Character.AI shutting down?

Last checked 27 October 2026

Character.AI is not shutting down yet. It filed for Chapter 11 bankruptcy on 12 October 2026 to sell the company, and the site and app still work. The company says that if no buyer offers to keep the platform running, it “will be wound down”. The data export is the only copy of your chats you control, and it can take 3 to 4 weeks to arrive, so ask for it now.

What happened

On 12 October 2026 Character.AI posted “An Update on Character.ai”. In it, the company says it “has initiated a voluntary Chapter 11 bankruptcy process to facilitate a court-supervised sale of the company”, after “significant legal, regulatory, and operational headwinds” over the past year. The case was filed by Character Technologies, the company behind the app, in the US Bankruptcy Court for the District of Delaware.

Does Character.AI still work?

Yes. The post says the platform “remains up and running” and that you can use all its services for now. Paid subscriptions remain active and billing is unchanged. The company says it will tell subscribers in advance if a change affects paid features.

When will we know?

Character.AI expects the sale to be complete “by the end of November or perhaps early December 2026”. It can end in two ways:

• A buyer keeps the platform going. The company hopes the sale brings “an actionable proposal that will allow continued operations”. What a new owner would change isn’t known.
• No such buyer comes forward. In the company’s words: “If such a bid is unavailable, however, the platform will be wound down.”

Nobody outside the court process knows yet which it will be. Your own copy costs nothing if the platform survives, and it is the only way to keep your chats if it doesn’t.

What Disney has to do with it

Bloomberg Law reports that Disney is the stalking-horse bidder: it offers $20 million, plus transition services, for a non-exclusive, perpetual licence to certain intellectual property of the company. A stalking-horse bid sets the opening price of a court sale, and other bidders can offer more. As reported, Disney’s offer is for a licence, not for the company or the app.

What happens to your chats and data

The company says your information “continues to be protected under our Privacy Policy”. CBS News points out that the same policy allows user data, chat transcripts included, to be disclosed in connection with a sale of the company or its assets. The post also reminds users that they can delete their account or export their data, in the app or on the website.

The announcement doesn’t say what happens to chats if the platform is wound down. A copy you downloaded yourself stays readable either way: the export is a ZIP file on your own device.

What to do now

1. Ask for your data export today. In the app: open your profile, tap the Settings icon, then Legal & Privacy, then Export Data. On the website: Profile Settings, Account, Manage Account & Data, Export Data. Character.AI’s help centre says it can take 3 to 4 weeks, so a request made in late October may arrive only shortly before the sale is expected to end.
2. Download the ZIP the day the email comes. The link works for 7 days. Keep the ZIP in two places, for example your computer and a USB stick or a cloud drive.
3. Check that it holds what you care about. Open it in Chatbound (the password is your account’s email address in lowercase) and search for a line you remember from an important chat.
4. Copy by hand what the export leaves out. It doesn’t say which character each chat was with, and pinned memories don’t reliably appear. While the site is up, note the names of the characters you talk to and copy their pinned memories.
5. Save readable copies. Chatbound saves any chat as HTML, plain text or Markdown for free. Pro saves every chat at once as one offline book, a PDF or an EPUB.
6. Keep chatting elsewhere if you want to. Your characters and chats can move to apps that import them, such as SillyTavern and Perchance.

If you keep chatting on Character.AI after your first export, ask for another one later. Chatbound Pro merges several exports into one archive and removes the repeated messages. The whole routine is in how to save your Character.AI chats.

The “October 15” shutdown rumour

Searches for “Character.AI shutting down on October 15” go back to a screenshot that went round in October 2023, saying the site would be wiped on 15 October. Stealth Optional reported at the time that the screenshot appeared to be edited, and the site didn’t close. The 2026 bankruptcy is a separate, real event.

Sources: Character.AI, “An Update on Character.ai” (12 October 2026, checked 27 October 2026); Bloomberg Law, “Character.ai Files for Chapter 11 Bankruptcy in Delaware” (Audrey Wan, 13 October 2026); CBS News, “Character.ai files for bankruptcy, citing legal and operational woes” (Aimee Picchi, 13 October 2026); Stealth Optional, “Is Character AI shutting down on October 15?” (Melwyn Joseph, 10 October 2023); Character.AI Help Center, “How do I download my data?” (checked 21 October 2026); AIInsightsNews, “How to Export Character AI Chat in 2026”, a hands-on account with screenshots of the email and the ZIP (25 May 2026, checked 21 October 2026). This page reports what these sources say and is not legal advice. Chatbound is not affiliated with Character.AI.

Questions

Is Character.AI shutting down?

Not now. It filed for Chapter 11 on 12 October 2026 to sell the company and is still running. The company says the platform will be wound down if no buyer offers to keep it going, and expects the sale to be complete by the end of November or early December 2026.

Is Character.AI bankrupt?

It is in a Chapter 11 bankruptcy case, filed on 12 October 2026 in Delaware, which it is using to sell the company under the court’s supervision. The site and app keep working while the sale runs.

Is Character.AI shutting down on October 15?

No. That claim comes from a screenshot that went round in October 2023 and was reported as edited. The real news is the Chapter 11 sale announced on 12 October 2026.

Did Disney buy Character.AI?

No. Disney is the first bidder in the court sale, offering $20 million for a non-exclusive licence to certain intellectual property of the company. The sale isn’t finished, and other bids can come in.

Will my c.ai+ subscription keep working?

For now, yes. The company says subscriptions remain active and billing is unchanged, and that subscribers will be told in advance if a change affects paid features.

What happens to my chats if Character.AI closes?

The announcement doesn’t say. The only copy you control is the data export you download yourself. Ask for it in your settings now, since it can take 3 to 4 weeks to arrive.

Can I still export my data?

Yes. The company’s announcement reminds users that they can export their data in the app or on the website. The export arrives by email as a password-protected ZIP, and Chatbound opens it in your browser.