Character.AI is being sold: what to do with your family's chats

What's happening

On 12 October 2026, Character.AI said it had filed for bankruptcy so the company could be sold under court supervision. The app is still running, and paid subscriptions are still active. The company expects the sale to be finished by the end of November or perhaps early December 2026. If no suitable buyer turns up, it says the app will be wound down.

Why it matters for families

Chats with a character can get personal: friendships, worries, crushes, school stress. CBS News reports that Character.AI's privacy policy allows the information it collects, including chat transcripts, voice recordings, images and videos, to be passed on as part of a sale. Character.AI says your information is still protected under its privacy policy for now. But a new owner may run things differently.

What to do

1. Talk about it first. Ask your kids whether they use Character.AI or similar apps, and what they'd want to keep. Keep it calm: this is tidying up, not a telling-off.
2. Export anything worth keeping. Character.AI says you can export your data in the app or on its website.
3. Then delete the account, also in the app or on the website, if you don't plan to keep using it.
4. Check other apps too. Delete accounts on any chatbot or companion app nobody uses any more.

For more, see our Family AI rules and Is it safe to share personal info with AI?