Disney to hire majority of Character.AI workforce — SkimNews
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- Disney agreed to make employment offers to at least 60 Character.AI employees — the majority of the startup's workforce — with combined annual compensation estimated at $60 million, per a legal filing spotted by Bloomberg.
- The deal is structured as a stalking horse arrangement, so a competing company could still outbid Disney for Character.AI's assets and talent.
- Character.AI's former CEO Karandeep Anand recently became Disney's first CTO, and Disney separately agreed to acquire some of the startup's assets for $20 million.
- Character.AI filed for bankruptcy earlier this week, hobbled by high costs and "potential litigation-related liabilities and regulatory engagement," according to the filing.
- The startup faces a lawsuit from the mother of a 14-year-old who said her son became obsessed with a Character.AI chatbot before committing suicide, as well as government investigations over child safety concerns.
- The "vast majority" of Character.AI employees who were offered Disney positions accepted them, the filing states.
Why it matters: Disney is effectively absorbing Character.AI's AI talent and core technology for a relatively modest $20 million in asset value plus payroll — but the deal is non-binding, meaning a rival bidder could still poach the team. The bankruptcy itself signals that safety-driven litigation and regulatory scrutiny over companion chatbots have become existential risks for the category.
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