Following the bankruptcy filing of chatbot startup Character.AI, Disney has committed to hiring a significant portion of its staff. The entertainment giant will extend job offers to at least 60 employees, which constitutes the majority of the startup's workforce.
The total annual compensation for these incoming employees is estimated at $60 million. This arrangement follows the recent appointment of former Character.AI CEO Karandeep Anand as the first CTO of Disney.
The agreement is part of a broader asset acquisition deal valued at $20 million. While most employees have already accepted the offers, the deal remains a stalking horse bid, meaning other entities could still submit higher proposals.
Character.AI cited high operational costs and significant legal liabilities as primary reasons for its financial distress. The company is currently facing government investigations regarding child safety and a lawsuit related to a user's death.
