After chatbot startup Character.AI filed for bankruptcy earlier this week, many of its employees will have the option of taking jobs at Disney.
Character.AI’s former CEO Karandeep Anand recently became the entertainment giant’s first CTO, and the startup previously said Disney agreed to acquire some of its assets for $20 million.
A legal filing spotted by Bloomberg revealed more details about the agreement between Character.AI and Disney, with Disney agreeing to make job offers to at least 60 Character.AI employees – the majority of the workforce – paying them an estimated $60 million in annual compensation.
The filing also says that the “vast majority” of Character.AI employees who have been offered jobs at Disney have accepted them. However, this is a stalking horse bid, so another company could come in with a higher bid.
The filing says that despite its “large and dedicated user base,” Character.AI has been hampered by high costs and “potential litigation-related liabilities and regulatory involvement.” (The company was sued by the mother of a 14-year-old boy who said her son became obsessed with one of the character’s AI chatbots before committing suicide; it also faces government investigations into child safety concerns.)