Circuit Breaker Labs is a startup focused on making artificial intelligence safer, especially for vulnerable users like children. The company was founded by siblings Shirali and Arul Nigam, inspired by tragic cases where AI chatbots, such as those from Character.AI and OpenAI, were linked to psychological harm and even suicides among underage users. The founders aim to address gaps in AI safety where systems misunderstand delicate human expressions and interactions, which can lead to dangerous responses.

To combat these risks, Circuit Breaker Labs has developed AI agents that act as "crash-test dummies" representing a wide variety of people across ages, languages, and cultures. These simulated users help the startup run intensive adversarial tests against AI models by mimicking real-life communication patterns, slang, and nuances that often confuse AI. By conducting tens of thousands of these tests daily, the company identifies vulnerabilities where AI might fail to properly manage harmful or risky conversations.

The startup currently operates as a safety testing lab for high-risk AI applications like mental health support and AI coaching tools, though it keeps its main customers confidential. Their proprietary scoring system delivers transparent, explainable safety evaluations to ensure AI systems behave responsibly in sensitive contexts. Though still in early stages with a small team, Circuit Breaker Labs envisions expanding their platform to any AI product where users might develop unhealthy parasocial bonds with chatbots, such as AI coworkers.

With growing concern and legal scrutiny around AI’s psychological effects, Circuit Breaker Labs hopes its work will rebuild trust by preventing harm and making AI more reliable and empathetic. The company is among the finalists in TechCrunch’s 2026 Startup Battlefield and will pitch at TechCrunch Disrupt in San Francisco this October. They believe that safer AI is key not only to protecting users but also to ensuring the technology’s successful adoption rather than rejection due to fear.