Disney has agreed to make employment offers to at least 60 Character.AI employees, described as the majority of its workforce, a legal filing shows. The filing estimates the offers would pay about $60 million a year in compensation and says the vast majority of those offered jobs accepted them. The startup earlier said Disney agreed to acquire some of its assets for $20 million. The arrangement is a stalking-horse bid, meaning another company could still make a higher offer.
Character.AI filed for bankruptcy earlier in the week. The filing cites high costs and potential litigation-related liabilities and regulatory engagement as hurdles, despite what it calls a large and engaged user base. The company was sued by the mother of a 14-year-old boy who died by suicide and who, she says, became obsessed with one of its chatbots. It also faces government investigations over child safety concerns.
Karandeep Anand, Character.AI's former chief executive, recently became Disney's first chief technology officer, and it is not stated whether he has any role in the hiring. No comment from executives at either company has been published.
Many details are undisclosed: job titles and pay for the people hired, which assets the $20 million covers and whether that price could change, who any rival bidder might be, what happens to the chatbot platform and its users, and whether the 60-plus figure covers all employees or only those with offers.
