Disney agrees to hire majority of bankrupt Character.AI workforce in $60m-a-year deal

Disney has agreed to hire the bulk of Character.AI’s workforce for an estimated $60 million a year, weeks after the chatbot startup filed for bankruptcy.

A legal filing first spotted by Bloomberg, and reported by TechCrunch, says Disney will make employment offers to at least 60 Character.AI employees — “the majority” of the workforce — with $60 million in aggregate annual compensation. Business Insider put the headcount at 66, based on the same Chapter 11 filing. Either way, the “vast majority” of those offered jobs accepted them.

Disney is also setting aside a $30 million retention pool, with $180 million in expected pay and retention over three years. Of the 66 staff offered jobs, 56 have resigned while ten await US work-visa updates, Business Insider reported.

Separately, a Disney unit would pay $20 million for a non-exclusive, perpetual licence to some of the startup’s IP and certain legal claims. Disney is the “stalking horse” bidder: rival offers are due by 20 November, and the sale could close in late November or early December, subject to court approval.

Character Technologies filed for Chapter 11 in Delaware on 12 October, blaming high costs plus “potential litigation-related liabilities and regulatory engagement” — the startup has faced child-safety lawsuits. Its former chief executive, Karandeep Anand, became Disney’s first company-wide tech chief in September, shortly before Disney laid off several hundred staff in its third major round of cuts since Josh D’Amaro took over in March.