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

The Verge published a fresh technology report on this development. AI Craft Pad is surfacing the update as a concise source-linked news brief.
What Happened
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 […]
Why It Matters
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What To Watch
Watch for follow-up reporting, official statements, product documentation, or additional technical details as the story develops.
