Legal Concerns and Anxiety Over Mental Health Lead to AI's Ban on Teen Chat
- Character.AI bans under-18s from open-ended AI chats from Nov 25, restricting teens to guided "Stories" and video features amid mental health concerns. - The move follows lawsuits linking the app to teen suicides and addiction, including a case involving 14-year-old Sewell Setzer III. - Critics argue chatbot dependency risks persist despite new safety-focused features, with mixed user reactions and calls for broader societal solutions. - The policy aligns with industry trends as AI firms face growing leg
Character.AI, a prominent platform for AI companions, has implemented a major policy change to address growing worries about youth mental health, now prohibiting anyone under 18 from engaging in unrestricted conversations with its AI characters,
This policy update follows a year marked by increased scrutiny from the public and legal system. Character.AI has been the subject of several lawsuits, including one filed by the family of 14-year-old Sewell Setzer III, who
To help ease the effects of this restriction, Character.AI has rolled out "Stories,"
Mental health professionals have commented on the situation, highlighting the critical role of real-life social interaction for teenagers’ development. Dr. [Name], a psychotherapist mentioned in a CNBC article,
Character.AI’s new direction mirrors a larger movement within the industry. Interactive fiction has seen a surge in popularity recently,
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Enlivex Integrates Biotechnology and Blockchain for a Treasury Transformation
- Enlivex Therapeutics raised $212 million to adopt RAIN tokens as its primary treasury asset, becoming the first U.S. public company to use blockchain-based prediction markets. - The investment includes USDT and USD, with RAIN's deflationary design aiming to stabilize value while enabling real-world event trading via AI oracles. - Enlivex's stock surged 85% post-announcement, aligning with growing institutional interest in prediction markets led by firms like Polymarket and Kalshi. - The move faces crypto

Bitcoin Updates: Metaplanet Utilizes Bitcoin-Backed Loan to Expand Portfolio Despite 20% Unrealized Loss
- Tokyo-listed Metaplanet secured a $130M Bitcoin-backed loan to expand BTC holdings despite a 20% unrealized loss on its 30,823 BTC reserves. - The firm maintains "sufficient collateral headroom" amid Bitcoin's $87,000 price, below its $108K average purchase cost, using floating-rate debt and equity financing. - Its hybrid funding model—$500M credit facility plus $5B capital injections—reflects broader industry reliance on crypto-collateralized borrowing amid tightening credit and falling stock prices. -

USDe's total value locked drops by 50% even as onchain activity remains strong, highlighting the vulnerability of DeFi yields
- Ethena's USDe stablecoin TVL fell 50% to $7.6B amid yield compression and unwinding leveraged carry trades, despite rising onchain transaction volume. - The synthetic stablecoin's 5.1% APY now lags Aave's 5.4% USDC borrowing rates, triggering outflows as leverage strategies become unprofitable. - Collapsing 10x leverage loops and maturing perpetual tokens accelerated TVL decline, exposing fragility of yield-bearing stablecoins in risk-off markets. - Chaos Labs recommends lowering Aave V3 stablecoin borro