TechWhat happens to Character.AI users’ data as the company files for bankruptcy?

New York Attorney General Letitia James and 39 other bipartisan state attorneys general are asking a bankruptcy court to protect Character.AI users’ data in any sale or transfer of the company’s assets. They say a multistate investigation raised serious concerns about children’s safety, age checks and privacy, and want any buyer to adopt safeguards, limit minors’ chatbot use and let users delete their data. Character.AI has filed for Chapter 11 and plans to sell some assets to Disney.

Character.AIuser privacybankruptcychild safety

TThe Verge★★★☆☆2026-10-14 18:47Original