Hajra Naz
Following a bankruptcy filing by chatbot startup Character.AI earlier this week, many of its workers now have a chance to join Disney.
Character.AI’s former CEO Karandeep Anand recently stepped into the role of chief technology officer at the entertainment giant. The startup had already revealed that Disney agreed to purchase select assets for $20 million.
A new legal filing uncovered by Bloomberg sheds light on additional terms of the deal. Under the arrangement, Disney agreed to extend job offers to at least 60 Character.AI staff members. This group represents the majority of the startup’s workforce. Disney plans to pay these employees an estimated $60 million in total yearly compensation.
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The court document notes that the vast majority of employees who received offers chose to accept them. However, this arrangement functions as a stalking horse bid. Another entity could still step in with a higher competing offer.
The filing further details the financial and legal troubles behind the collapse. Despite maintaining a large and active user base, Character.AI suffered under heavy operational expenses. It also faced severe legal risks and regulatory oversight.
Specifically, the company was named in a lawsuit by a mother whose 14-year-old son tragically died by suicide after developing an obsession with an AI chatbot. Additionally, the startup remains under official government scrutiny regarding its child safety measures.
