Now that Character.AI is going bankrupt, what happens to all of its users’ data?
2026-10-14 · The Verge
Character.AI is going bankrupt and 40 state attorneys general are swooping in to make sure user data doesn't get sold off like furniture at a garage sale. Years of letting an AI chatbot collect who-knows-what from users, and now the question is who gets to inherit that lovely data trove. Nothing says 'we cared about our users' quite like a bankruptcy filing and a multi-state investigation.