Disney to pay $60 million a year for 66 staff from bankrupt Character.AI, filing shows

The Walt Disney Company plans to pay $US60 million a year to 66 employees it is hiring from the AI chatbot startup Character.AI, according to a Chapter 11 bankruptcy filing by the startup’s parent company, Business Insider reported on Friday (US time).

Disney has also set aside $30 million for a retention pool to encourage the staff to stay, and expects to spend $180 million on their total pay and retention over the next three years, the filing said. Of the 66 people offered jobs, 56 have already resigned from Character.AI, while the other 10 are waiting for US authorities to update their work visas.

Disney also agreed to pay $20 million for Character.AI’s key assets, including some intellectual property and technology. Other companies can submit competing bids by 20 November, and the process will be overseen by a bankruptcy judge, Business Insider reported.

In mid-September, Disney hired Character.AI chief executive Karandeep Anand as its first company-wide technology chief. The hires come about two weeks after Disney laid off several hundred workers, including some in technology.

Character.AI has faced lawsuits from families who alleged that their teenagers harmed themselves after using its chatbots. In announcing its bankruptcy, the company said it had faced “significant legal, regulatory, and operational headwinds.”

Disney did not respond to Business Insider’s request for comment.