Google, Character.AI Reach Settlement in Lawsuits Involving Alleged Harm to Teens
Google and artificial intelligence startup Character.AI have reached a tentative settlement in multiple lawsuits brought by families who allege that AI chatbots caused harm to minors, including a high-profile case involving a Florida teenager, according to court filings released Wednesday.
The agreement covers lawsuits filed in Florida, Colorado, New York, and Texas. While the settlements still require final court approval, legal documents confirm that the parties have agreed in principle to resolve all outstanding claims. Financial and legal terms of the settlement have not been made public.
“Parties have agreed to a mediated settlement in principle to resolve all claims between them,” according to the filing submitted in Florida.
Among the cases is a lawsuit filed by Megan Garcia, whose 14-year-old son, Sewell Setzer Jr., died in February 2024. The suit alleged that her son developed an unhealthy emotional reliance on a chatbot hosted by Character.AI, a platform that allows users to engage in conversations with fictional and pop-culture-inspired characters.
The case became a flashpoint in a broader debate over artificial intelligence and child safety, triggering heightened scrutiny of AI companies across the industry, including OpenAI and others offering conversational AI tools to the public.
Google became linked to the litigation through a $2.7 billion licensing agreement it signed with Character.AI in 2024. As part of that deal, Google also rehired Character.AI founders Noam Shazeer and Daniel De Freitas, both former Google employees.
A spokesperson for Character.AI declined to comment on the settlement. Representatives for Google and Garcia did not immediately respond to requests for comment.
Amid the controversy, Character.AI announced in October that it would disable chat functionality for users under the age of 18, a move widely viewed as an effort to address growing concerns over the impact of AI chatbots on minors.
The settlements mark a significant moment for the rapidly evolving AI industry, underscoring increasing legal and ethical pressure on tech companies to ensure the safety of younger users as artificial intelligence tools become more widespread.
