Character.AI has filed for Chapter 11 bankruptcy and is selling some assets to Disney, while New York Attorney General Letitia James and 40 bipartisan state AGs seek to protect consumer data in the proceedings. The AGs raised concerns about significant risks tied to the transfer of the platform's technology amid an ongoing multi-state investigation.
Background
Character.AI, a popular AI chatbot platform, filed for Chapter 11 bankruptcy after failing to secure sufficient funding. The case raises broader questions about how consumer data is handled when tech companies dissolve or are acquired.
- Source
- The Verge
- Published
- Oct 15, 2026 at 02:47 AM
- Score
- 6.0 / 10