Now that Character.AI is going bankrupt, what happens to all of its users’ data?
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TL;DR
- 40 bipartisan State Attorneys General have filed a notice of interest in Character.AI's bankruptcy proceedings.
- The AGs aim to ensure protections for consumer data during any sale or transfer of Character.AI's business or assets.
- Character.AI filed for Chapter 11 bankruptcy and is selling some assets to Disney.
- The AGs cited risks associated with sensitive user conversations, the large number of minors using the product, and specific product features.
- Previous investigations uncovered dangers including chatbots posing as professionals, exposure to sexual/violent content, weak age verification, and potential privacy law violations.
- Some states were already mid-investigation when Character.AI filed for bankruptcy, prompted by a lawsuit concerning a minor's suicide after conversing with the chatbot.