Disney has extended job offers to at least 60 employees from the AI startup Character.AI following the company's bankruptcy filing on October 13. According to court documents, the majority of the staff accepted the offers, with the total annual compensation for the group estimated at approximately $60 million.
The arrangement is structured as a stalking horse bid, allowing other potential buyers to submit higher offers for the assets. Additionally, Disney has agreed to purchase specific assets from Character.AI for $20 million. This follows the appointment of former Character.AI CEO Karandeep Anand as Disney's first CTO in September.
Character.AI, founded in 2022, faced significant financial strain due to high operating costs, regulatory pressure, and legal liabilities. The company recently settled a lawsuit involving a 14-year-old user. Furthermore, the firm is currently under investigation by the US Federal Trade Commission regarding its chatbot services for minors.
