Disney agrees to hire most of Character.AI’s employees

In short: Disney has agreed to hire most of Character.AI’s workforce after the chatbot company filed for bankruptcy.

What happened

Character.AI, a company known for chatbots (computer programs that talk with you like a text conversation), filed for bankruptcy earlier this week. Soon after, a legal filing described a deal that gives many of its employees a path to new jobs at Disney.

According to the filing, Disney agreed to make employment offers to at least 60 Character.AI employees. That is described as the majority of Character.AI’s staff. The filing estimates Disney would pay about $60 million per year in total compensation for those hires.

The filing also says the “vast majority” of the people who received offers accepted them. Separately, Character.AI previously said Disney planned to buy some of its assets for $20 million. Assets can include things like software, contracts, and other valuable company property.

One important detail is that this is described as a “stalking horse bid,” which is an opening offer used in bankruptcy (like the first bid at an auction). Another buyer could still come in with a higher offer.

Why it matters

This move shows how a large company can pick up talent even when a smaller tech company is in trouble. It could also affect what happens to Character.AI’s products and user community, especially as the company has faced high costs and legal and regulatory pressure, including child safety concerns mentioned in earlier reporting.

Source: TechCrunch AI