Disney to hire majority of Character.AI staff as bankrupt chatbot startup faces litigation and regulatory pressure
Character.AI filed for bankruptcy earlier this week, and Disney has agreed to make employment offers to at least 60 of its employees, the majority of the workforce, at an estimated $60 million in annual compensation. A legal filing spotted by Bloomberg says the "vast majority" of those offered jobs accepted. Disney had previously agreed to acquire some of the startup's assets for $20 million, and former Character.AI CEO Karandeep Anand recently became Disney's first CTO. The deal is a stalking horse bid, so another company could still come forward with a higher offer. The filing blames the company's financial distress on high costs and "potential litigation-related liabilities and regulatory engagement." These include a lawsuit from the mother of a 14-year-old boy who died by suicide after becoming obsessed with a Character.AI chatbot, and government investigations over child safety. The article describes no cyber threat, vulnerability or intrusion.
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Disney to hire majority of Character.AI staff as bankrupt chatbot startup faces litigation and regulatory pressure
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Character.AI filed for bankruptcy earlier this week, and Disney has agreed to make employment offers to at least 60 of its employees, the majority of the workforce, at an estimated $60 million in annual compensation. A legal filing spotted by Bloomberg says the "vast majority" of those offered jobs accepted. Disney had previously agreed to acquire some of the startup's assets for $20 million, and former Character.AI CEO Karandeep Anand recently became Disney's first CTO. The deal is a stalking horse bid, so another company could still come forward with a higher offer. The filing blames the company's financial distress on high costs and "potential litigation-related liabilities and regulatory engagement." These include a lawsuit from the mother of a 14-year-old boy who died by suicide after becoming obsessed with a Character.AI chatbot, and government investigations over child safety. The article describes no cyber threat, vulnerability or intrusion.