AI Matters
Why it matters
40 state attorneys general weigh in on Character.AI bankruptcy and user data
The Verge AI Now that Character.AI is going bankrupt, what happens to all of its users’ data?
New York's attorney general and 39 others filed a notice of interest in Character.AI's bankruptcy case, seeking safeguards on consumer data sold in the proceeding.
Why it matters
Chats and personal data from Character.AI users could be sold off, and regulators want protections in place first.
Latest brief · Oct 19, 2026