Character.AI bankruptcy notice makes chat data a buyer liability
The filing makes private conversation data a regulatory issue in any Character.AI asset sale.
| Character.AI | |
|---|---|
| monthly users | more than 20 million |
| under-18 accounts | more than 2 million |
| AG coalition | 39 other attorneys general |
| harmful interactions | 669 in 50 hours |
| test accounts | children ages 12 to 15 |
| suicide mentions | 55 times |
New York's attorney general and 39 other state attorneys general filed the notice in the bankruptcy case. The release says Character.AI has more than 20 million monthly users, including more than 2 million accounts registered to users self-declared as under 18.
The notice asks the court to require age-assurance systems, restrictions on minor use, crisis safeguards, and user deletion. It does not say a buyer will receive the conversation data or that the court will order those terms.
For a buyer, the under-18 accounts and the 669 harmful interactions found in 50 hours make the data a liability before transfer.
No page gives a count of stored chats or their retention period. The size of the stored conversation corpus, the value of the data to a buyer, and the scope of assets to be sold remain unmeasured.
The filing constrains buyers, but it does not measure the stored corpus or identify a buyer.
After ag.ny.gov. We did not report this. The pictures, if any, are theirs.
