Disney agrees to hire the majority of Character.AI’s workforce

Chatbot startup Character.AI filed for bankruptcy, and Disney has agreed to hire the majority of its workforce, offering jobs to at least 60 employees with estimated annual compensation of $60 million. This move follows Character.AI’s former CEO Karandeep Anand becoming Disney’s first CTO. Disney previously agreed to acquire some of Character.AI’s assets for $20 million. Despite a large user base, Character.AI struggled with high costs, potential litigation, and regulatory issues, including lawsuits related to child safety concerns. Most employees offered positions at Disney have accepted. The bid is a stalking horse offer, leaving room for higher bids from other companies.