Disney offers to hire 60 ex-Character.AI employees with a $60 million incentive

After the bankruptcy of Character.AI, Disney has committed to offering positions to at least 60 employees from the startup, with an estimated annual budget of $60 million. This stalking horse offer has already been accepted by the vast majority of the affected employees. Disney also announced the acquisition of certain assets for $20 million, while the former CEO of Character.AI has recently been appointed as the first CTO of the group.

Legal Issues and Investigations Weigh on Character.AI

Character.AI has faced significant costs and risks related to litigation and regulatory obligations, despite having a user base described as large and engaged. The company has been sued by the mother of a 14-year-old boy who claims her son became obsessed with a Character.AI chatbot before taking his own life. Additionally, the company is under government investigations concerning child safety.

Disney Job Offers for at Least 60 Employees

Disney has committed to offering job positions to at least 60 employees from Character.AI, with a total estimated annual compensation of $60 million. The vast majority of the affected employees have accepted these offers. The agreement is structured as a stalking horse bid, meaning another company could present a higher offer. Many Character.AI employees will thus have the opportunity to join Disney.

Leadership, Assets, and Bankruptcy Timeline

Karandeep Anand, the former CEO of Character.AI, has recently been appointed as Disney's first CTO. Character.AI had previously indicated that Disney was committed to purchasing some of its assets for $20 million. The startup filed for bankruptcy earlier this week.