Now that Character.AI is going bankrupt, what happens to all of its users’ data?
Important for AI tool users to understand data privacy risks when platforms fail.
AI Summary
State attorneys general are intervening in Character.AI's bankruptcy to protect user data from being sold, citing serious privacy risks and concerns about minors' sensitive conversations.
Excerpt
New York Attorney General Letitia James revealed a years-long multi-state investigation against Character.AI as they now seek to require protections on consumer data sold through its bankruptcy proceeding. James is among 40 bipartisan AGs who filed a notice of interest in Character.AI's bankruptcy case "to put all parties on notice of the regulatory issues that will need to be addressed in any sale or transfer of the Debtor's business or assets." Character.AI announced Tuesday it was filing for