Disney has agreed to offer jobs to at least 60 employees from the chatbot startup Character.AI as part of an asset acquisition deal.
Key facts
- •Disney is hiring at least 60 Character.AI employees with an estimated $60 million in total annual compensation.
- •The deal is structured as a stalking horse bid, allowing for potential competing offers.
- •Disney previously agreed to purchase some Character.AI assets for $20 million.
- •Character.AI's former CEO, Karandeep Anand, recently joined Disney as its first CTO.
- •The startup faces ongoing government investigations and a lawsuit related to child safety concerns.
Following the bankruptcy filing of chatbot startup Character.AI, Disney has agreed to hire the majority of the company's workforce. The entertainment giant will extend employment offers to at least 60 staff members, with an estimated annual compensation of $60 million.
By the numbers
Terms of the Agreement
The hiring arrangement is part of a stalking horse bid, meaning other companies could still submit higher offers for the startup's assets. Disney previously agreed to acquire certain assets from Character.AI for $20 million. According to legal filings, the vast majority of employees who received job offers from Disney have already accepted them.
Financial and Legal Challenges
Character.AI cited high operational costs and potential legal liabilities as factors contributing to its bankruptcy. The startup is currently facing government investigations regarding child safety and a lawsuit filed by the mother of a 14-year-old boy who alleged her son became obsessed with a chatbot before his death.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by TechCrunch AI.
