Now that Character.AI is going bankrupt, what happens to all of its users’ data?

Explain Like I'm Normal

Character.AI's bankruptcy has triggered a massive consumer data concern, drawing a bipartisan coalition of 40 attorneys general. They are filing a notice to ensure that sensitive user interactions—many of which are highly personal or romantic in nature—aren't sold off to the highest bidder without strict oversight. This case sets a major precedent for how 'AI companionship' data is treated during corporate liquidations.