Disney agrees to hire the majority of Character AI’s workforce
Disney has agreed to hire the majority of Character.AI's workforce following the startup's bankruptcy filing. The deal follows Disney's acquisition of certain assets and the hiring of Character.AI's former CEO.
Why it matters
This move illustrates the consolidation of AI talent by major media conglomerates and the challenges faced by high-profile AI startups regarding safety and profitability.
After chatbot startup Character.AI filed for bankruptcy earlier this week, many of its employees will have the opportunity to take jobs at Disney.
Character.AI’s former CEO, Karandeep Anand, recently became the entertainment giant’s first CTO , and the startup previously said that Disney had agreed to acquire some of its assets for $20 million.
A legal filing spotted by Bloomberg revealed more details about the agreement between Character.AI and Disney, with Disney agreeing to make employment offers to at least 60 Character.AI employees — the majority of the workforce — paying them an estimated $60 million in annual compensation.
The filing also says that the “vast majority” of Character.AI employees who were offered jobs at Disney accepted them. However, this is a stalking horse bid, so another company could come forward with a higher offer.
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