Disney offers jobs to most of Character.AI’s workforce

Disney is offering jobs to at least 60 Character.AI employees after the chatbot startup entered bankruptcy proceedings, according to a legal filing reported by TechCrunch.¹² The proposed move would give most of Character.AI’s workforce a route into the entertainment company, although the filing says the deal remains a stalking-horse bid that could be outbid by another buyer.¹

What the filing says

The filing estimates that Disney’s offers would represent roughly $60 million in annual compensation. It also says the vast majority of the employees offered roles accepted them. Character.AI previously said Disney had agreed to acquire some of its assets for $20 million, while former Character.AI chief executive Karandeep Anand has already joined Disney as its first chief technology officer.²³

Character.AI filed for bankruptcy earlier this week after struggling with high operating costs and potential litigation and regulatory liabilities, according to the report. The company has faced scrutiny over child-safety concerns, including a lawsuit brought by the mother of a 14-year-old boy.²⁴ Those allegations remain separate from the employment agreement and should not be treated as findings against every employee or the proposed Disney transaction.

The arrangement is not yet a final sale. A stalking-horse bid establishes an initial offer in a bankruptcy process, but another bidder can still come forward with better terms. Disney’s hiring offers therefore look more concrete than a rumoured acquisition while remaining subject to the wider proceedings.

Our opinion

This is a striking example of an AI company’s value being split between its technology, its liabilities and the people who built it. Disney appears to be pursuing the workforce and selected assets rather than simply taking on Character.AI wholesale. That could preserve useful expertise while giving the chatbot startup’s legal and regulatory problems a more controlled path through bankruptcy. The important caveat is that the filing describes an offer, not a completed transfer: the workforce may have a likely landing spot, but the deal is not finished until the bankruptcy process says it is.