Disney has agreed to offer jobs to at least 60 Character.AI employees after the chatbot startup filed for bankruptcy earlier this week. The offers cover a majority of Character.AI’s workforce, according to a legal filing spotted by Bloomberg.
The filing estimates that Disney would pay those employees $60 million a year in compensation. It also says the “vast majority” of Character.AI employees offered jobs at Disney have accepted.
Character.AI previously said Disney had agreed to acquire some of its assets for $20 million. The startup’s former CEO, Karandeep Anand, recently became Disney’s first chief technology officer.
The agreement is a stalking horse bid. Another company could come forward with a higher offer, so Disney’s proposed asset purchase is still subject to that possibility.
High costs and lawsuits pressured the startup
The filing says Character.AI has a “large and engaged user base” but has been held back by high costs and “potential litigation-related liabilities and regulatory engagement.” Those pressures form the backdrop to the bankruptcy and Disney’s agreement.
Character.AI was sued by the mother of a 14-year-old boy. She said her son became obsessed with one of the company’s chatbots before he died by suicide. The company also faces government investigations over child safety concerns.
For now, Disney’s offer stands as the stalking horse bid, and another company could submit a higher offer.
