Bankruptcy filing shows Disney will offer jobs to at least 60 Character.AI employees
The offers carry an estimated $60 million in annual pay, but Disney's bid is a stalking horse that a higher offer could still beat.
Days after chatbot startup Character.AI filed for bankruptcy, a legal filing first reported by Bloomberg gives more detail on its deal with Disney. Disney has agreed to make job offers to at least 60 Character.AI employees, the majority of the workforce, with estimated annual compensation of $60 million. The filing says the "vast majority" of employees who received offers have accepted. The company had already said Disney would acquire some of its assets for $20 million. Character.AI's former CEO, Karandeep Anand, recently became Disney's first chief technology officer. Disney's offer is a stalking horse bid, so another company could still come forward with a higher one. The filing says that despite a "large and engaged user base," Character.AI has been held back by high costs and by "potential litigation-related liabilities and regulatory engagement." The company was sued by the mother of a 14-year-old boy who she said became obsessed with one of its chatbots before he died by suicide. It also faces government investigations over child safety. The filing shows that most of Disney's spending in the deal goes to the startup's staff, not its assets, and it confirms the sale is not yet final.