Character Technologies, the company behind the AI chatbot app Character.ai, filed for Chapter 11 bankruptcy this week, raising questions about what happens to millions of users’ private conversations.
Two women look at their mobile phones while sitting in a park in central Warsaw on Sept. 16, 2026. (Mladen Antonov/AFP via Getty Images)
Redwood City-based Character Technologies, maker of one of the best-known AI companion chatbots, Character.AI, has faced lawsuits from families who alleged its chatbots contributed to their children’s suicides and self-harm. It’s also been the target of regulators pushing for age verification tech because of its popularity with kids. Character.AI’s CEO told the…