Is Character AI Shutting Down? Here's What We Know
Character.AI has filed for bankruptcy. Here's a plain-English summary of what's happening, what it could mean for your characters, and how to keep your favorites going somewhere new.
Free to join · Adults 18+ only · Fictional characters
Last updated: October 24, 2026
This page summarizes public news reports. Character.AI is still operating as of this update. We'll update this page when the sale outcome is announced.
What happened
In October 2026, Character.AI's parent company filed for Chapter 11 bankruptcy and announced a court-supervised sale.
Is it still working?
Yes, for now. The company says the platform and subscriptions continue during the process.
What happens next
A sale is expected around late 2026. The company has said it may wind down the platform if no sale goes through.
What it means for you
Your characters' future depends on the buyer. Saving your character details now means you won't lose them.
Choose your chat mode
Each mode sets how she starts. From there she follows your lead, turning up the heat or easing back whenever you do.
Friendly
Easygoing conversation. She's warm and fun but never makes the first flirty move.
Flirty
Playful teasing, compliments and chemistry from the very first message.
Suggestive
Steamy hints and slow-burn tension that build as you talk.
Explicit
Fully adult conversation for when you want her to hold nothing back.
Why switch to AI Dream Companion now
Don't wait to lose your favorites
Rebuild the characters you care about today, on a platform you control, instead of waiting to see what a new owner decides.
Built for adults
AI Dream Companion is 18+ only with clear safety rules, so romantic and explicit roleplay between fictional adults is welcome.
More than text
Give your character a face. Ask for photos in the chat and turn them into HD videos, with the same look every time.
You set the tone
Four chat modes let you choose how each conversation starts, from Friendly to Explicit. She adapts to you from there.
Free to start
Your first companion is free with 20 free messages a day.
How it works
- 1
Save your character
Open each character you love on Character.AI and copy her name, greeting, personality and backstory into a note.
- 2
Create a free account
Sign up on AI Dream Companion and confirm you're 18+.
- 3
Bring her back to life
Paste her details into the companion builder, choose her look, pick a chat mode and pick up where you left off.
What the Character.AI bankruptcy means for users
Chapter 11 lets a company keep operating while it reorganizes or sells its business. Character.AI has said it is running a court-supervised sale and that the app stays available in the meantime, with subscriptions still active.
What happens after the sale is up to the buyer. Features, rules or the app itself could change, and the company has said it may wind the platform down if no sale is completed. If you have characters you'd hate to lose, the safest move is to save their details now.
AI Dream Companion is an independent, adults-only platform. You can recreate your character here, give her a consistent face, and chat, request photos and make videos, all in one place.
Sources
Frequently asked questions
Is Character.AI shutting down?
Not yet. Character.AI filed for Chapter 11 bankruptcy in October 2026 and is still operating while it looks for a buyer. The company has said it may wind down if a sale isn't completed.
Will I lose my Character.AI chats?
That depends on what happens in the sale. Character.AI has said user data remains covered by its privacy policy during the process. If your characters matter to you, save their details now so you can rebuild them anywhere.
How do I move my character to AI Dream Companion?
Copy your character's name, greeting, personality and backstory, sign up free, and paste them into the companion builder. Then choose her look and start chatting.
Is AI Dream Companion affiliated with Character.AI?
No. AI Dream Companion is an independent service and is not affiliated with, sponsored by or endorsed by Character.AI. Character.AI is a trademark of its owner.
Is it free to try?
Yes. Signing up is free, your first companion is free, and you get 20 chat messages a day at no cost. Photos and videos use credits from a monthly plan or a one-time credit pack, and credit pack credits never expire.
Who can use AI Dream Companion?
AI Dream Companion is for adults 18 and over only. Every companion is a fictional adult character, and content involving minors, real people or celebrities is strictly prohibited.
Ready to meet her?
Create your free account and start in minutes.