AG Brown seeks consumer protections in Character.AI bankruptcy

Washington Attorney General Nick Brown and a bipartisan group of states have filed a notice in the bankruptcy proceedings of Character.AI raising concerns about harms to children interacting with the company's AI chatbots and the handling of sensitive consumer data. The states demand enforceable safety and privacy protections in any sale or transfer of Character.AI's business to prevent exploitation and misuse of private information.

This Wire brief sits within Fusion42's coverage of AI Infrastructure, and 3 sources have reported it between 14 Oct 2026 and 15 Oct 2026.