Tech
Now that Character.AI is going bankrupt, what happens to all of its users’ data?
Publication: The Verge
Author: Lauren Feiner
Source published: 14/10/2026, 18:47:54 UTC
Briefing created: 15/10/2026, 04:02:37 UTC
Based on a feed excerpt; full article content has not been acquired. Source evidence retrieved 14/10/2026, 19:01:25 UTC.
Briefings
New York Attorney General Letitia James initiated a multi-state investigation into Character.AI following the company's Chapter 11 filing and sale of assets to Disney. The AGs are now requiring consumer data sold through the bankruptcy process to be protected, warning of serious risks in transferring the technology. Character.AI announced its bankruptcy filing on October 14, 2026, with the investigation ongoing as of the article's publication.
Key points
- New York Attorney General Letitia James led a multi-state investigation into Character.AI after the company filed for Chapter 11 bankruptcy and sold assets to Disney.
- The AGs are now requiring consumer data sold through the bankruptcy proceeding to be protected, warning of serious risks in transferring the technology.
Context and limitations
Investigation details remain unconfirmed; specific data protection measures are not yet detailed; full scope of the multi-state inquiry is not yet complete.
Generated by Bittrees-hosted qwen35-2b sha256:aaf42c8b7c3c on 15/10/2026, 04:02:37 UTC. Based on publisher-provided feed evidence; may not cover the full original article. Check the source for details.
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