Entertainment giant Disney has agreed to make employment offers to at least 60 employees from the chatbot startup Character.AI, following the startup's bankruptcy filing earlier this week. This group represents the majority of Character.AI's workforce.
A legal filing, reported by Bloomberg, detailed the agreement, which includes an estimated $60 million in annual compensation for the new hires. The filing also indicates that the "vast majority" of Character.AI employees who received job offers from Disney have accepted them.
This agreement is described as a stalking horse bid, meaning another company could still present a higher offer. Character.AI's former CEO, Karandeep Anand, recently became Disney's first CTO. Disney had previously stated its agreement to acquire some of Character.AI's assets for $20 million.
Despite a "large and engaged user base," Character.AI has faced challenges due to high costs, potential litigation-related liabilities, and regulatory engagement, according to the filing. The company has been sued over child safety concerns and is subject to government investigations.