Disney has agreed to offer jobs to at least 60 Character.AI employees, covering a majority of the chatbot startup’s workforce after it filed for bankruptcy. A court filing estimates the group’s annual compensation at about $60 million and says the vast majority of recipients accepted.
The employment plan is tied to Disney’s proposed acquisition of some Character.AI assets for $20 million. Character.AI’s former chief executive, Karandeep Anand, recently became Disney’s first chief technology officer, giving the entertainment company an experienced leader as it absorbs talent from the startup.
The agreement is a stalking-horse bid, which sets an initial offer in a bankruptcy sale. Another buyer can still submit a higher proposal, so neither the asset transfer nor its final terms are guaranteed. Character.AI said it had built a large, engaged user base, but the filing identifies high operating costs, potential litigation liabilities and regulatory scrutiny as burdens. The company has faced lawsuits and government investigations involving child-safety concerns around its chatbots. For Disney, the arrangement offers a way to acquire an established AI team without taking on the entire company, while the bankruptcy process leaves room for competing bids.