Character Technologies (Character.AI)

Rule Changes

Settled wrongful-death suits over teen users in January 2026

ChatGPT now treats accounts it guesses belong to minors as teen accounts, and on October 30 OpenAI tightened those limits again. The company said teens will no longer get practical weapons or security-system information, even for questions that look harmless. OpenAI also promised a Community Safety Report, with the first edition due in early 2027.

Updated Oct 31

Rule Changes

Settled teen suicide lawsuits; under investigation by multiple state AGs

Eight states sued OpenAI on Oct. 14, 2026, saying ChatGPT violated consumer protection laws by harming children and misleading adults. The suits were filed separately in each state's own courts, and follow Florida's June lawsuit against the company and chief executive Sam Altman.

Updated Oct 23

Money Moves

In Chapter 11 bankruptcy

Character.ai, the chatbot platform that let users talk to AI versions of celebrities and fictional characters, filed for Chapter 11 bankruptcy on Monday. The startup, founded in 2021 and once valued at $1 billion, is seeking a court-supervised sale with Disney as the lead bidder.

Updated Oct 18