A plan for Disney to hire Character.AI workers has emerged from the chatbot startup’s bankruptcy proceedings. Disney agreed to offer jobs to at least 60 employees, representing most of the workforce. Their estimated combined annual compensation is $60 million.
According to bankruptcy court documents Bloomberg highlighted, most employees accepted the offers. The agreement follows Disney’s appointment of former Character.AI CEO Karandeep Anand as its first chief technology officer.
Disney to Hire Character.AI Workers as Asset Sale Advances
The hiring arrangement accompanies Disney’s proposed $20 million acquisition of certain Character.AI assets. Disney is the stalking-horse bidder, establishing an initial offer that competing buyers can challenge. The transaction remains subject to bankruptcy court proceedings.
Character.AI filed for bankruptcy despite maintaining a large user base. Court documents cite high operating costs, potential litigation liabilities and regulatory scrutiny as significant challenges.
The startup has faced lawsuits involving chatbot safety, including one brought by the mother of a 14-year-old boy. She alleged that interactions with a Character.AI chatbot contributed to her son’s death. The company has also faced government investigations concerning child safety.
Disney’s agreement provides employment opportunities for much of Character.AI’s workforce while the company restructures. However, the asset sale remains open to competing bids, leaving the startup’s future ownership and operations unresolved.
