Disney has agreed to hire at least 60 Character.AI employees, representing the majority of its workforce, as part of a $20 million asset acquisition deal. The move follows Character.AI's recent bankruptcy filing, which prompted the entertainment giant to offer employment to its former staff.
A legal filing revealed that Disney will pay an estimated $60 million annually in compensation to the employees it hires. The filing also noted that the 'vast majority' of Character.AI employees who were offered jobs at Disney accepted them.
Character.AI’s former CEO, Karandeep Anand, has become Disney’s first CTO, signaling the startup’s integration into the entertainment giant. The company previously stated that Disney had agreed to acquire some of its assets for $20 million.
"Disney agreed to make employment offers to at least 60 Character.AI employees," said a legal filing spotted by Bloomberg. The filing also mentioned that this is a stalking horse bid, so another company could come forward with a higher offer.
The announcement follows Character.AI’s bankruptcy filing earlier this week, which has left many of its employees seeking new opportunities. Disney’s move is seen as a strategic effort to bolster its AI capabilities.
Disney did not say how many of the remaining employees will be hired, and the company faces ongoing legal challenges, including a lawsuit over a chatbot linked to a teen's suicide. The situation remains fluid as potential buyers may emerge.
Source: techcrunch
