Disney has offered jobs to at least 60 Character.AI employees, most of whom reportedly accepted, while pursuing a $20 million deal for some of the startup's assets that another bidder could still top.
These hires would represent a majority of Character.AI's workforce. A court filing estimates their combined annual compensation at about $60 million. The offer serves as an opening bid that sets a baseline price for the assets but does not prevent another buyer from offering more.
Character.AI filed for Chapter 11 bankruptcy protection in October, citing financial strain from high operating costs and potential legal and regulatory liabilities. The company has also faced scrutiny over child safety, including a lawsuit filed by the mother of a teenager who used its chatbot service. Disney's interest comes after it appointed Character.AI's former chief executive, Karandeep Anand, as the entertainment company's first chief technology officer.
The proposed arrangement could give Disney a large team of artificial intelligence specialists, though the asset sale still depends on bankruptcy court proceedings and competing bids. The job offers provide a possible next step for much of Character.AI's staff while the future of the startup is decided.