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Now that Character.AI is going bankrupt, what happens to all of its users’ data?

The Verge AI·October 14, 2026·1 min read
Now that Character.AI is going bankrupt, what happens to all of its users’ data?

AI Summary

New York Attorney General Letitia James has disclosed a multi-state investigation involving 40 bipartisan attorneys general into Character.AI's bankruptcy proceedings, focusing on consumer data protections. The AGs filed a notice of interest to ensure regulatory issues are addressed in any sale or transfer of the company's business and user data assets.

From the source

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

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View original at The Verge AI

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