Disney Welcomes Employees of Bankrupt Chatbot Startup Character.AI
The vast majority of employees from the bankrupt artificial intelligence startup Character.AI are moving to Disney. The company aims to strengthen its technology team by offering a compensation package of $60 million annually to more than 60 employees.
A large portion of the employees of the chatbot startup Character.AI, which is undergoing bankruptcy proceedings, are joining Disney. According to legal documents obtained by Bloomberg, Disney has agreed to offer jobs to at least 60 employees, making up the majority of Character.AI's workforce, and pay these employees a total compensation of around $60 million annually.
The appointment of Character.AI's former CEO Karandeep Anand as Disney's first CTO shortly ago laid the foundation for this collaboration. Disney initiated this recruitment process as part of a previously executed $20 million asset purchase agreement. According to company records, the vast majority of employees who received job offers accepted them.
Because the agreement in question was made using a "stalking horse" method, there is a possibility that other companies could submit a higher bid. Despite having a large user base, Character.AI was experiencing financial difficulties due to high operational costs, potential legal liabilities, and processes with regulatory agencies.