Disney Agrees to Hire Majority of Character.AI Workforce
Following its bankruptcy filing earlier this week, chatbot startup Character.AI has reached an agreement with Disney. The entertainment giant will hire at least 60 employees from the workforce—representing a majority—and pay them approximately $60 million in annual compensation. This follows previous reports that Disney had agreed to acquire some of Character.AI’s assets for $20 million, and its former CEO now serves as Disney's first CTO. The employment agreement is part of a stalking horse bid process, meaning another company could potentially offer more attractive terms. Despite having a large user base, Character.AI has struggled with high operational costs and legal challenges, including lawsuits related to child safety concerns and regulatory investigations.
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Topics: AI Character.AI Disney Media & Entertainment Startups