POLICY · COMPANIES · #2162
Disney to hire majority of Character.AI staff after startup files for bankruptcy
A legal filing shows Disney agreed to make employment offers to at least 60 Character.AI employees — the majority of the startup’s workforce — with an estimated $60 million in annual compensation; the filing also says the vast majority accepted. The deal accompanies a separate agreement for Disney to acquire some Character.AI assets for $20 million and follows the startup’s recent bankruptcy filing and the hiring of former Character.AI CEO Karandeep Anand as Disney’s CTO; the sale is currently a stalking-horse bid and could be topped by another buyer.
KEY POINTS
- A legal filing shows Disney agreed to make employment offers to at least 60 Character.AI employees — the majority of the startup’s workforce — with an estimated $60 million in annual compensation; the filing also says the vast majority accepted.
- The deal accompanies a separate agreement for Disney to acquire some Character.AI assets for $20 million and follows the startup’s recent bankruptcy filing and the hiring of former Character.AI CEO Karandeep Anand as Disney’s CTO; the sale is currently a stalking-horse bid and could be topped by another buyer.
- The move shifts a large portion of Character.AI’s technical talent and some assets into Disney, affecting AI product capability, competition and how outstanding legal and safety liabilities are managed.
WHY IT MATTERS
The move shifts a large portion of Character.AI’s technical talent and some assets into Disney, affecting AI product capability, competition and how outstanding legal and safety liabilities are managed.