Disney to hire most of bankrupt Character.AI's workforce
After chatbot startup Character.AI filed for bankruptcy, entertainment giant Disney has agreed to offer jobs to at least 60 of its employees. Most of those who received offers have reportedly accepted.
Disney has agreed to make job offers to at least 60 employees of Character.AI, a US chatbot startup that filed for bankruptcy earlier this week. That is the majority of the company's workforce, according to a legal filing spotted by Bloomberg and reported by TechCrunch.
What the agreement includes
The filing says Disney will pay these employees an estimated $60 million in annual compensation. It also states that the "vast majority" of those offered jobs have already 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 (CTO).
The offer is not final
The deal is a "stalking horse" bid, meaning an opening offer in a bankruptcy process. Another company could still come forward with a higher offer.
Reasons behind the bankruptcy
The filing says that despite a "large and engaged user base," Character.AI has been hobbled by high costs, as well as potential litigation-related liabilities and regulatory engagement.
The company is involved in a lawsuit brought by the mother of a 14-year-old boy, who says her son became obsessed with one of its chatbots before taking his own life. Character.AI also faces government investigations over child safety concerns.
