Making AI Headlines · Page 3

A Chat History Is Not Office Furniture

Forty bipartisan state attorneys general have filed a notice of interest in Character.AI's bankruptcy case, seeking protections for consumer data sold through the proceeding. The intervention puts users' information alongside the business's financial restructuring. Personal conversations can carry expectations that do not disappear when their custodian becomes insolvent. A sale process therefore raises questions beyond who acquires the company's ordinary assets. The attorneys general want regulatory concerns carried into that process. A server can fit neatly on an inventory sheet. The expectations attached to its contents are less cooperative about being stacked beside the filing cabinets.

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