Now that Character.AI is going bankrupt, what happens to all of its users’ data?
Following Character.AI's bankruptcy filing, a bipartisan coalition of 40 attorneys general has launched a formal effort to safeguard user data. Led by New York’s Letitia James, the regulatory move aims to prevent sensitive consumer information from being exploited during the asset liquidation process. This development highlights growing governmental concern regarding the privacy implications of AI companies failing and the subsequent treatment of the personal data they collected during their operation.
What this means for you
Businesses and individuals should proactively review the privacy policies of AI platforms, as data protection remains uncertain when startups collapse.
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