Disney to Hire Majority of Character.AI Workforce

Walt Disney Company has agreed to hire the majority of employees from AI startup Character.AI, which recently filed for bankruptcy protection. The agreement also includes the acquisition of some of Character.AI's assets for a reported $20 million.

According to a new legal filing, Disney has extended employment offers to at least 60 Character.AI employees, representing the bulk of the company's workforce. The estimated annual compensation for these employees totals $60 million. The majority of those offered positions have accepted.

Character.AI, previously known for its interactive AI chatbots, faced bankruptcy due to high operational costs and significant potential litigation and regulatory liabilities. The company had also been subject to investigations and lawsuits concerning child safety and alleged harmful content.

Karandeep Anand, the former CEO of Character.AI, recently joined Disney as its first Chief Technology Officer. This move, along with the current asset acquisition and employment offers, indicates Disney's strategic focus on advancing its capabilities in artificial intelligence and interactive entertainment.