
Everything They Told It
Character.AI is for sale, and it still holds the chats kids had with it.
In court, the states say Character.AI built its bots "to create emotional bonds with users, and to induce users to divulge their most private thoughts and emotions." Now those thoughts are part of a bankruptcy.
October 12. Character.AI files for bankruptcy in Delaware and puts itself up for sale. The app stays on during the sale. If no buyer keeps it, it "will be wound down."
October 14. 39 states and Washington, D.C. tell the court what the company holds. By March 13, 2025, there were more than 21.6 million U.S. accounts, and more than 2.1 million of them gave an age under 18. That's the age users typed in, so the real number of kids is not known.
What it holds. The chats, the voice calls, and what users said about their mental health, "including minors."
The limit on kids. Character.AI stopped open-ended chats for users it knows are under 18. The states point out that's voluntary and "could be rolled back at any time, including by a purchaser."
What the states want from any buyer. Age checks that don't just take a typed-in birthday. No training on the chats without consent. And a chance for everyone to delete their data before it's sold.
October 30. The court holds a hearing on the rules for the sale.
Come backwards down the number line