Character.ai Chapter 11 exposes user chat records to creditors

The bankruptcy of AI chatbot company Character.ai highlights growing concerns that user data, messages, and sensitive personal secrets could be sold to third parties. Experts warn that even individuals who never used the service may be included in the dataset due to discussions about friends and family members. Although a coalition of US state attorneys general has filed a notice urging child safety and privacy protections, privacy advocates note that bankruptcy exemptions often bypass standard privacy policies. Open article →