{
  "id": 14537873,
  "title": "US states seek children's data protections in Character.AI bankruptcy",
  "url": "https://urgent.news/2026/10/14/us-states-seek-childrens-data-protections-in-character-ai-bankruptcy",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-14T21:07:00.000Z",
  "source": {
    "name": "Channel News Asia",
    "slug": "channel-news-asia",
    "url": "https://www.channelnewsasia.com/business/us-states-seek-childrens-data-protections-in-characterai-bankruptcy-6460676"
  },
  "original_language": "en",
  "account": "A coalition of 40 US state attorneys general is urging a Delaware bankruptcy judge to safeguard the data of young users of AI chatbot service Character.AI during the company's financial restructuring, according to a report on October 14. Character.AI filed for bankruptcy on Monday, proposing to resolve state investigations and lawsuits by licensing its technology to Disney for $20 million and seeking a buyer willing to take over its chatbot business. The state attorneys general are concerned about allegations that Character.AI's chatbots impersonated licensed medical professionals and exposed children to sexualized and abusive interactions. Abigail Ryan, an attorney for the states, stated that they are open to negotiating a settlement and working with potential buyers to implement safeguards, but they do not want previous transgressions to be repeated with a new purchaser. Disney has agreed to pay $20 million for Character.AI's technology and intellectual property, but they are not interested in the data that the state AGs are worried about. The company's bankruptcy is attributed to legal expenses and the high cost of AI technology, with Character.AI losing between $8 million and $9 million per month before filing for protection.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "Mashable",
        "title": "Character.AI bankruptcy filing reveals the rapid climb, stunning collapse of a once-major AI player",
        "url": "https://urgent.news/2026/10/14/character-ai-bankruptcy-filing-reveals-the-rapid-climb-stunning",
        "published": "2026-10-14T16:43:01.000Z"
      },
      {
        "outlet": "CNA - Business",
        "title": "US states seek children's data protections in Character.AI bankruptcy",
        "url": "https://urgent.news/2026/10/14/us-states-seek-childrens-data-protections-in-character-ai-bankruptcy-14543811",
        "published": "2026-10-14T21:07:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}