Character.AI Bankruptcy: Is It Shutting Down? 8 Alternatives

Disclosure: "SpicyChat AI is a SpicyRanked affiliate partner, and we may earn a commission if you sign up through our SpicyChat AI link, at no extra cost to you. Kalon AI is a paying SpicyRanked client. Payments never change what we write about Character.AI or the order of the list. This page is general information for adults aged 18 and over, not legal or financial advice."

Is Character.AI shutting down? Not right now. The app is still running after its parent company filed for Chapter 11 on 12 October 2026.

A court sale is underway, and no shutdown date has been set.

If the sale does not produce a bid that lets the app keep running, Character.AI says the platform will be wound down. This page tracks the court dates, what the Disney bid covers, what happens to your chats, and 8 alternatives if you want a backup.

Last updated 24 October 2026. We checked the court docket, the case dates list on the official case website and Character.AI's own update post that day.

Character.AI status on 24 October 2026. Here is where things stand.

• The app. Still up. The company says you can use all services and that paid plans stay active.

• The case. Character Technologies, Inc. filed for Chapter 11 in the US Bankruptcy Court for the District of Delaware. The case number is 26-11603.

• The first bid. Disney offers $20 million for a nonexclusive license to some technology. The draft license leaves out the app itself and all user data, chats and outputs.

• Next date. A group of 31 states and Washington, DC, objected to the sale rules on 23 October. The court hears them on 30 October at 10am ET (7.30pm IST).

• Still proposed. A bid deadline of 20 November, an auction on 23 November and a sale hearing on 24 November. The court has not approved these dates yet.

Is Character.AI Shutting Down Right Now?

No. On 12 October 2026, Character.AI said the platform "remains up and running" and that you can still use all of its services.

The same post set out the risk plainly. It said the company hopes a buyer will keep the app going, but "if such a bid is unavailable, however, the platform will be wound down."

The platform's future depends on the bids received and what the court approves.

Why Character.AI Filed for Chapter 11

Chapter 11 lets a company keep running while a court oversees a sale or a plan to pay its debts. It is not the same as closing down on day one.

Character.AI points to "legal, regulatory, and operational headwinds" over the past year. Its sale motion adds that its cash was running low and that lawsuits and regulators weighed on any sale.

The company expects the sale to wrap up by the end of November or early December 2026. That is its own estimate, not a court order.

What Was Filed and Where

The filing came from Character Technologies, Inc., the company behind Character.AI. Here are the basic facts from the court papers.

You can read the voluntary petition on the case website. The estimated assets and debts appear on page 4.

How to Follow the Case Yourself

These free options show new dates and filings.

• The official case website. Stretto hosts the Character Technologies case page with filings and a subscribe option.

• The dates list. The case dates page lists the hearings and deadlines posted by Stretto.

• A free docket copy. CourtListener keeps a free copy of the docket, though it can lag behind the court.

• The case line. Stretto answers questions at 833.787.0667 in the US or 916.404.9364 from abroad.

Character.AI Bankruptcy Timeline and Key Dates

Each date below is labelled. "Happened" means it is done, and "Scheduled" means the court has set it.

"Proposed" means the company has asked for it, but the court has not approved it yet.

US clocks go back on 1 November, so the gap to India time changes from 9.5 hours to 10.5 hours after that date.

The states have asked the court to push the bid deadline back by at least 21 days and to move the sale objection deadline until after a winner is named. So these proposed dates may change on 30 October.

The 23 and 30 October dates come from the notice of hearing. The November sale dates come from the bidding procedures motion, which the court will consider on 30 October.

The 17 November hearing is set in an omnibus hearing notice. The 19 November meeting is in the notice of commencement, which says no proof of claim deadline had been set when it was filed on 15 October.

We will update this page after the 30 October hearing. If the judge changes the dates, the table will change too.

What Disney's $20 Million Bid Covers and What It Leaves Out

Disney has not bought Character.AI. Disney Worldwide Services, Inc. is the "stalking horse" bidder, which means its offer is the opening bid that others can try to beat.

Its offer is $20 million in cash. Disney has already paid $7.5 million of that before the filing, and $2 million of that sum is a refundable deposit.

The company has asked the court to let it pay Disney a breakup fee and expense reimbursement capped at $700,000 in total. That would be due if the company completes a rival deal for the same assets, including when another bidder wins, or if it materially breaches the agreement. The court is due to consider the request on 30 October.

On 23 October, attorneys general from 31 states and Washington, DC, objected to the sale rules. They say the rules favor Disney and could put off higher bids. They asked the court to deny the $700,000 fee or limit it to documented costs, to give rivals more time and to drop the rule that a rival winner must release Disney from claims. The court has not ruled yet. The objection is Doc 66 on the case docket, posted on the Stretto case website.

A Nonexclusive License, Not the App

Under the proposed deal, Disney would get a perpetual, worldwide license to some Character.AI technology, and the license is not exclusive. It would also get any unreleased legal claims that Character Technologies itself holds against the staff Disney hired.

Nonexclusive means Character.AI can still license the same technology to other buyers. Disney gets the right to use it, not sole ownership.

The draft license spells out what Disney does not get. It leaves out the company's consumer apps, which means the app and website people use.

It also excludes "end user data or databases," personal details, anything users type in and "any outputs generated for end users." Training data and the finished chat models are left out as well.

A term sheet in the same filing says Disney "will not acquire or operate" the consumer platform, customer accounts or brand. In short, the Disney deal on its own does not keep the app alive.

What Happens to Your Chats, Characters and Data

For now, nothing has changed. Character.AI says your information is still covered by its Privacy Policy and that its privacy and security practices are "unchanged."

The Disney deal leaves user data out. But the company can still sell its other assets, and bidders may ask for them. The filings we reviewed do not name a buyer for user data or chats.

On 14 October, attorneys general from 39 states and Washington, DC, filed a notice with the court, and Florida joined it on 20 October. They asked that any buyer keep safety and privacy protections in place.

They also asked that users get "the opportunity to delete their data prior to any sale of that data." This is a request, not a court order. The states kept the right to ask for a consumer privacy ombudsman, a neutral expert who reviews data sales.

You can read the attorneys general notice in full. As of 24 October, the docket shows no ombudsman or creditors committee. In their 23 October objection, the states kept the right to argue that an ombudsman is needed.

Your Characters and Personas

Characters you made live on Character.AI's servers. If the platform winds down and no buyer takes it over, they may stop being available.

An export may not include everything you need to rebuild a character elsewhere. Copying its name, definition and example dialogue into a notes file is worth a few minutes.

Your Chat History and Memories

Your chats are part of the user data that the Disney license leaves out. What happens to them depends on whether another buyer bids for them and what the court allows.

If you care about old chats, request your export now.

Your c.ai+ Subscription

Character.AI says subscriptions "remain active, and billing is unchanged for now." It says it intends to give subscribers advance notice if service changes affect paid features.

Its 12 October update does not set out a refund plan for a wind down. If you pay yearly, keep that in mind before you renew, and check your app store or billing page for your renewal date.

Three Ways This Could End

These are possibilities drawn from the filings, not predictions.

1. A buyer keeps the app running. Someone bids for the platform, users and brand, and the court approves it. The app could carry on under a new owner with new terms.

2. Only the Disney license sells. No one bids for the app. Disney gets its license and the company winds the platform down, as its own post warns.

3. The assets are split up. Disney takes the license, and other buyers take other parts. Any sale of user data could face the attorneys general requests and court review.

How to Save Your Character.AI Data Before the Sale

Character.AI's help center says exports can take 3 to 4 weeks, and the emailed download link works for 7 days from when it is sent.

By our own count, a request made today could take until about 21 November at the full 4 weeks. That is around the proposed 20 November bid deadline, so it makes sense to ask now rather than wait for the sale outcome.

For the full export and deletion steps on the website and in the app, see our guide on how to export and delete your Character.AI data.

8 Character.AI Alternatives if You Are Leaving

You do not have to leave Character.AI today, but a backup app is a sensible plan while the sale plays out.

We grouped these 8 by why people use Character.AI. The table shows selected paid prices in US dollars with the billing period, checked in October 2026, and prices can change, so check the current checkout before you subscribe.

If you are leaving for NSFW chat specifically, see does Character.AI allow NSFW for its current rules.

1. SpicyChat AI, Closest to the Character.AI Library

SpicyChat AI is built around a large library of characters made by users. Its profile settings let you show or hide chatbots with explicit images or language.

There is a free tier, and the Get A Taste plan costs $5.95 a month on monthly billing. Our review notes that memory on the free and entry plans is short, so long stories can lose detail.

Read our SpicyChat AI review for plans and privacy, or visit SpicyChat AI.

2. Janitor AI, Free Community Roleplay

Janitor AI is known for free roleplay and a large set of community characters. Its rules allow adult text between adult characters, but not explicit images.

Its help center says the free tier has unlimited chats. Janitor+ adds more memory, and the US App Store lists it at $12.99 a month.

We do not have a Janitor AI review yet. Our list of the best Janitor AI alternatives compares it with similar sites.

3. Kindroid, One Companion With Strong Memory

Kindroid suits people who talk to one main character rather than many. Its help center describes layered memory, and it adds voice calls and selfies.

Kindroid ended ongoing free messaging on 1 October 2026. New accounts get a single preview of 50 messages, or 15 in some regions.

A premium trial of 3 days needs a payment method and turns into a paid plan unless you cancel. Prices are shown at checkout and vary by country and platform.

Our Kindroid review covers its plans and extras.

4. Nomi AI, Companion Chat With Long Memory

Nomi AI markets short, medium and long term memory, so a character can recall past chats. It allows adult text but not nude images.

It is free to start. Monthly billing costs $15.99, and its own comparison page lists quarterly and yearly plans that cost less per month. We have not reviewed Nomi AI yet, so check its site for current terms.

5. Replika, an Established Everyday Companion

Replika, from Luka, Inc., has been around since 2017, according to its App Store listing. It focuses on one companion, with memory, voice and video calls.

There is a limited free plan, and paid plans are priced inside the app. Its Terms say users must be 18 or over.

See our Replika review for prices, privacy and age checks.

6. CrushOn AI, Adult Roleplay With Many Models

CrushOn AI offers an Unfiltered mode and a choice of chat models. It suits adults who hit Character.AI's content filter.

The free plan includes unlimited chats on Free Models and 100 message credits a month for Pro Models. Standard costs $5.99 a month.

Our CrushOn AI review explains how its credits work.

7. Candy AI, One Custom Partner With Images and Voice

Candy AI lets you build one partner and chat by text, with images and voice notes on Premium. Extras use tokens, which can run out.

The free plan is very limited. Premium runs from $3.99 a month on the yearly plan to $13.99 a month on the monthly plan.

Read our Candy AI review for the token rules.

8. OurDream AI, Design Your Own Character

OurDream AI is an app for adults that builds custom companions with chat, images, short video and voice. It suits people who want to shape every detail.

Monthly Premium costs $19.99 a month, and images and video use coins. Our OurDream AI review covers the coin costs.

A note on Kalon AI. As of 19 October 2026, its site says all AI features are down while it builds version 2.

We left it out of the list because you cannot chat on it today. We will review it again when it relaunches. Our Kalon AI review covers its plans from before the pause.

Want more choice? Our best AI girlfriend apps list ranks 11 companion apps.

How to Pick a Character.AI Replacement

Start with what you used Character.AI for most.

Whatever you pick, read its privacy policy before you share personal details. The attorneys general notice is a reminder that chat logs can hold very private information.

A good habit is to export and delete your data before you leave any app. Our deletion guide covers 14 companion apps.

Is It Safe to Keep Using Character.AI?

The app works as normal for now, and the company says its privacy and security practices have not changed. Your account still runs under the same Privacy Policy.

The attorneys general have raised safety and privacy concerns in their notice. Those are concerns and requests, not findings by the court.

If you keep using it, avoid sharing details you would not want stored or sold.

Character.AI Bankruptcy FAQ

Bottom Line

Character.AI is not shut down. It is in a court sale, and Disney's opening bid covers a technology license, not the app or your data.

The next date is the 30 October hearing (7.30pm IST), where the court will weigh the states' objection. Until then, request your export, copy your favorite characters and try a backup app if you want one.