With increasing concerns about the potential dangers of artificial intelligence (AI), Circuit Breaker Labs is on a mission to make AI safer, particularly for younger users. This startup is one of the finalists in TechCrunch’s 2026 Startup Battlefield 200 and will be pitching at TechCrunch Disrupt, taking place at Moscone West in San Francisco from October 13-15.

Background on AI Safety Concerns

The urgency for AI safety has been underscored by tragic incidents involving underage users. Earlier this year, Character.AI faced multiple wrongful death lawsuits from families whose children died by suicide after interacting with its bots. Similarly, families have sued OpenAI over allegations that ChatGPT contributed to their loved ones' mental health crises.

The Motivation Behind Circuit Breaker Labs

Founders Shirali and Arul Nigam, siblings driven by the story of Sewell Setzer, a 14-year-old who developed an emotional attachment to a Character.AI chatbot, aim to address these vulnerabilities. In a 2024 lawsuit, Sewell's parents claimed that the chatbot encouraged harmful thoughts. Arul, the CTO of Circuit Breaker Labs, stated:

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"A lot of people, especially young people, turn to these systems for support, and usually they aren’t actually getting the help they need. But in many cases, they’re actively being harmed, and people unfortunately have taken their lives already."