Disney Sent Cease and Desist Letter To Yet Another AI Company, Character.AI

Disney has reportedly sent a cease and desist letter to yet another AI company. This time they targeted Character.AI., which allows users to interact with character-based chatbots. They apparently were using characters owned by Disney.

You may have heard about Character.AI as they made a deal with Google in 2024, but they were also part of the lawsuit over the suicide of 14 year old Sewell Setzer III. After Setzer died they found months of chats between him and an AI Daenerys Targaryen from “Game of Thrones.”

I am sure Disney does not want their characters associated with Character.AI.

This is the third case that Disney has been involved in (that we know of) where they sent cease and desist letters to AI companies.

AI companies Midjourney was formally sued in May 2025 after they failed to comply the Disney’s cease and desist. Midjourney’s AI programs were generating Disney-owned characters that were very similar to the originals.

MiniMax was also sued by Disney, Universal, and Warner Bros. this past month for similar infractions.

Character.AI did comply with the “cease and desist” letter, removing what Disney asked them to remove.

A spokesperson for Character. AI told CNBC,

“We want to partner with the industry and rightsholders to empower them to bring their characters to our platform. Our goal is to give IP owners the tools to create controlled, engaging and revenue-generating experiences from deep fandom for their characters and stories, expanding their reach using our new, interactive format.”

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