Character.AI and Google settle with families in teen suicide and self-harm lawsuits

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Character.AI and Google have reportedly agreed to settle multiple lawsuits regarding teen suicide and self-harm. According to The Wall Street Journal, the victims’ families and the companies are working to finalize the settlement terms.

The families of several teens sued the companies in Florida, Colorado, Texas and New York. The Orlando, FL, lawsuit was filed by the mother of 14-year-old Sewell Setzer III, who used a Character.AI chatbot tailored after Game of Thrones’ Daenerys Targaryen. The teen reportedly exchanged sexualized messages with the chatbot and occasionally referred to it as “his baby sister.” He eventually talked about joining “Daenerys” in a deeper way before taking his own life.

The Texas suit accused a Character.AI model of encouraging a teen to cut his arms. It also allegedly suggested that murdering his parents was a reasonable option. After the lawsuits were filed, the startup changed its policies and banned users under 18.

Character.AI is a role-playing chatbot platform that allows you to create custom characters and share them with other users. Many are based on celebrities or fictional pop culture figures. The company was founded in 2021 by two Google engineers, Noam Shazeer and Daniel de Freitas. In 2024, Google rehired the co-founders and struck a $2.7 billion deal to license the startup’s technology.

On one hand, the settlements will likely compensate the victims’ families handsomely. On the other hand, not going to trial means key details of the cases may never be made public. It’s easy to imagine other AI companies facing similar suits, including OpenAI and Meta, viewing the settlements as a welcome development.

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