Australian kids’ AI chats for sale as chatbot app goes bankrupt
The AI companion app Character.AI has filed for bankruptcy, leading to a court-supervised sale of its assets. While Disney has licensed the technology, the private chat logs of up to 125,000 Australian children remain at risk of being sold to other bidders.
Why it matters
This raises significant privacy and ethical concerns regarding the commodification of intimate, personal data generated by minors in AI-driven environments.
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Share A A A The private conversations of up to 125,000 Australian children, who use Character.AI – an AI companion app popular with younger Australians – are up for sale after the company filed for bankruptcy in the United States.
Court filings show Disney has agreed to pay $US20 million ($28.6 million) for a licence to Character.AI’s technology. The deal excludes the app, its user accounts and every message its users typed.
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