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Times of India·3 min read·medium

After asking AI company to file for bankruptcy, Disney makes an offer to its employees

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After asking AI company to file for bankruptcy, Disney makes an offer to its employees
✦AI Summary

Disney has offered employment to over 60 staff members from the bankrupt AI startup Character AI as part of a broader licensing deal. The move is part of a $180 million arrangement that includes retention payments and access to the startup's technology.

Why it matters

This acquisition highlights the intense competition among major tech and media firms to secure specialized AI talent and intellectual property.

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Disney has offered jobs to employees of Character AI, which recently announced bankruptcy. According to bankruptcy court filings Bloomberg reviewed, the entertainment major has agreed to hire more than 60 workers from the AI chatbot platform and pay them about $180 million over the first three years. The offer comes after Character AI sought bankruptcy protection in October, following legal challenges and mounting costs associated with lawsuits over alleged harm to underage users.​Character AI had warned that its employees were experiencing “diminishing morale” and faced the risk of a mass exodus. The proposed arrangement, which still requires approval from a bankruptcy judge, forms part of a broader licensing deal that gives Disney access to Character's AI technology.​Disney offers jobs and retention payments to Character employees​Under the proposed agreement, Disney would hire most of Character's workforce covered by the deal.

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