Following chatbot startup Character.AI’s recent bankruptcy filing, numerous employees are poised to join Disney.
Character.AI’s former CEO, Karandeep Anand, recently became the entertainment titan’s inaugural CTO, and the startup had previously indicated Disney’s agreement to acquire some of its assets for $20 million.
A legal document, identified by Bloomberg, divulged additional details about the accord between Character.AI and Disney. Disney agreed to extend employment offers to at least 60 Character.AI staff members—constituting the majority of the workforce—with an estimated $60 million in annual compensation.
The filing also specifies that the “overwhelming majority” of Character.AI employees who received job offers from Disney have accepted them. However, this is a stalking horse bid, meaning another firm could potentially submit a more competitive offer.
The document indicates that despite its “extensive and engaged user base,” Character.AI has been hampered by elevated costs and “potential liabilities related to litigation and regulatory scrutiny.” (The company was sued by the mother of a 14-year-old boy who claimed her son developed an obsession with one of Character.AI’s chatbots before committing suicide; it also faces government inquiries concerning child safety issues.)