AI Tech / news
Disney to hire at least 60 Character.AI staff after chatbot startup's bankruptcy
Disney has agreed to make employment offers to at least 60 Character.AI employees, the majority of the chatbot startup's workforce, at an estimated $60 million in annual compensation, according to a legal filing. The move follows Character.AI's bankruptcy filing and a $20 million deal for some of its assets.
The agreement, detailed in a court filing, would bring the majority of Character.AI's staff to Disney at an estimated annual compensation of $60 million. The filing also said the "vast majority" of employees who received offers accepted them.
Disney had previously agreed to acquire some of Character.AI's assets for $20 million. The startup filed for bankruptcy earlier this week.
Character.AI's former CEO, Karandeep Anand, recently became Disney's first chief technology officer. The filing was reported after being spotted by Bloomberg.
The filing cited high costs and "potential litigation-related liabilities and regulatory engagement" as burdens on Character.AI despite what it described as a large and engaged user base. The company was sued by the mother of a 14-year-old boy who said her son became obsessed with one of its chatbots before committing suicide, and it also faces government investigations over child safety concerns.
The arrangement is structured as a stalking horse bid, meaning another company could come forward with a higher offer for the assets.