
Disney has always been a critic of AI in entertainment and the use of copyrighted material without permission. And this time, the entertainment giant has warned Character.AI to put a halt to using all the chatbots based on Disney characters with immediate effect. According to the studio, Character.AI has been using some of the most popular characters from Disney's large scale franchises like Star Wars, Marvel, Mickey Mouse, and Frozen. The warning by Disney has been issued via a cease and desist letter sent on September 18, 2025. As reported by NBC News who also reviewed a copy of the letter, Disney has alleged that Character.AI had systematically reproduced, monetized, and exploited its copyrighted and trademarked characters without any legitimate
permission, in a way that is anathema to the very essence of the Disney brand and legacy.Character.AI has issued its response on the matter and has also taken down all the disputed content. The officials from California-based startup said, 'We respond swiftly to requests to remove content that rightsholders report to us. The takedown was in response to such a request. These characters have been removed.'