Disney offers $20M for Character.AI’s scandal-plagued chatbot tech

Disney has submitted a $20 million bid to acquire a non-exclusive, perpetual license for specific intellectual property belonging to Character.AI. The offer, made during ongoing bankruptcy proceedings, targets technology previously at the center of significant controversy. Just over a year ago, Disney publicly criticized Character.AI, issuing a cease-and-desist letter that accused the startup of unauthorized use of Disney characters and potential brand damage. The move to acquire the company's assets marks a notable shift in strategy for the entertainment giant, which had previously expressed concerns regarding the chatbot maker's impact on children and intellectual property rights. While the specific assets included in the deal remain undisclosed, the proposal highlights Disney's ongoing interest in integrating generative AI technology into its operations, despite its previous legal and ethical disputes with the platform.