Character.AI bankruptcy puts users' private chats at risk
state ags seek protections for character.ai users' data as company files for bankruptcy and sells assets to disney.
character.ai filed for chapter 11 bankruptcy and is selling assets to disney, prompting concerns about the fate of its users' private chats. new york attorney general letitia james and 40 bipartisan state ags are seeking protections for consumer data, citing 'exceptionally serious dangers' and potential unlawful conduct by character.ai. the ags are urging the judge to require the purchaser to implement safeguards, including age-assurance systems and crisis safeguards. character.ai's chatbot conversations, particularly those involving minors, are at risk of being sold to the highest bidder.