Disney Sends Cease and Desist to AI Chatbot Company for Corrupting Its Characters

Disney Orders Character.AI to Pull Copyrighted Characters

Disney has told Character.AI to hit the brakes on using its characters without permission. According to reporting by CNBC, the company sent the AI startup a cease and desist letter last week, warning them to stop featuring Disney-owned IP in their chatbot platform.

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Character.AI, which lets users create and chat with character-based bots, confirmed it removed the flagged characters. A spokesperson noted that while some bots are original, others were “inspired by existing characters,” adding the company wants to partner with studios to create official, revenue-generating experiences.

This is the latest in Disney’s fight to protect its franchises in the AI era. The company is already suing image generator Midjourney, claiming it misused characters from Cars, Toy Story, The Avengers, and more.

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Character.AI isn’t new to controversy. Google struck a $2.7 billion deal with the company in 2024, the same year it was hit with a wrongful death lawsuit tied to a teenager’s interactions with chatbots on the app.

With lawsuits piling up across the industry, Disney’s message is clear: its characters aren’t free to play with in the AI sandbox.

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