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40 US attorneys general join Character.AI bankruptcy case, demanding protection of user data

Prepared by Sintelligent with the help of SI. Published in SI: . Updated: .

When a bankrupt chatbot is sold, the question arises of who gets its users' private conversations.

According to The Verge, New York Attorney General Letitia James is one of 40 attorneys general from both parties who filed a notice of interest in Character.AI's bankruptcy case to warn parties of regulatory issues in any sale of the business or its assets. They cite the "highly sensitive nature" of conversations with chatbots, the large number of minors among users, and risks of individual product features. The filing shows that several states had been running a years-long investigation and did not manage to reach an agreement before the bankruptcy. Character.AI announced Chapter 11 and the sale of some assets to Disney on Tuesday.

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History

Character.AI bankruptcy and Disney

3 events
  1. Disney to hire at least 60 Character.AI employees; the court filing estimates pay at about $60 million a year
  2. 40 US attorneys general join Character.AI bankruptcy case, demanding protection of user dataOpen now
  3. Character.AI files for Chapter 11 bankruptcy; Disney offers $20 million for its assets
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