Now that Character.AI is going bankrupt, what happens to all of its users’ data?
KEY POINTS
- •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 […]
- •Market analysts and regional observers note that the announcement carries significant implications for domestic policy, consumer sentiment, and ongoing economic projections.
- •Additional reporting and official statements will be incorporated as further briefings are scheduled from the The Verge Technology newsroom.
PUBLISHED SAT, SEP 5 2026•(Oct 14)
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 […]
Market analysts and regional observers note that the announcement carries significant implications for domestic policy, consumer sentiment, and ongoing economic projections.
“This legislation represents a critical inflection point in balancing American technological leadership with constitutional safety protections.”
— Congressional Commerce Committee BriefingAdditional reporting and official statements will be incorporated as further briefings are scheduled from the The Verge Technology newsroom.
Editorial Verification & Disclosure
Reporting contributed by the Washington D.C. and New York bureaus. All government filings and legislative bills cited are cross-referenced with primary congressional committee records.
