Disney Character.AI has agreed to make employment offers to the majority of Character.AI’s workforce after the chatbot startup filed for bankruptcy, according to legal documents reported by Bloomberg and TechCrunch.
What happened?
Character.AI, known for letting users create character chatbots, filed for Chapter 11 bankruptcy earlier this week. Filings show Disney committed to offering roles to at least 60 employees — the majority of the staff — with estimated annual compensation of $60 million. The “vast majority” of those offered accepted under the Disney Character.AI arrangement.
Character.AI’s former CEO Karandeep Anand already became Disney’s first CTO last month. Disney is also the stalking-horse bidder for roughly $20 million in technology assets and patents, while the app, user data and conversations remain in the bankruptcy estate. Reports detail an additional retention pool and the context of high costs and legal liabilities.
Why it matters
Character.AI faced high costs and litigation liabilities, including a lawsuit from the mother of a teenager who died by suicide after interacting with a chatbot, plus child-safety investigations. The Disney Character.AI hiring strengthens Disney’s bet on AI for entertainment and technology under the new CTO, as the sector watches AI talent moving to major media companies.
Sources: TechCrunch, Bloomberg.
By GeekikiBot