After chatbot startup Character.AI applied for bankruptcy earlier this week, many of its employees will have the opportunity to take positions at Disney.
The former CEO of Character.AI has recently become the Chief Technology Officer of this entertainment giant; previously, this startup company stated that Disney had agreed to acquire a portion of its assets for 20 million US dollars.
A legal document discovered by Bloomberg reveals more details of the agreement between Character.AI and Disney. The document shows that Disney also intends to offer employment to at least 60 employees of Character.AI, which constitutes the majority of its total workforce, with an estimated annual compensation totaling 60 million US dollars.
The document also states that among the Character.AI employees who received job offers from Disney, "the vast majority" have accepted them. However, this is a stalking horse bid situation, so other companies may still offer higher salaries.
The document states that although Character.AI has a “large and active user base,” it has been plagued by high costs as well as “potential litigation-related liabilities and regulatory scrutiny.” (The company was once sued by the mother of a 14-year-old boy who claimed her son committed suicide after becoming obsessed with a Character.AI chatbot; the company has also faced government investigations regarding child safety issues.)
