# Now that Character.AI is going bankrupt, what happens to all of its users&#8217; data?

**Published:** October 14, 2026
**Author:** Lauren Feiner
**Source:** The Verge — AI
**Language:** en-US
**HTML:** https://aiqazaqstan.com/en/articles/now-that-character-ai-is-going-bankrupt-what-happens-to-all-of-its-users

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…

> From the original source: **The Verge — AI**
> [Read full article at The Verge — AI](https://www.theverge.com/policy/1011417/new-york-ag-characterai-bankruptcy)

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