Character.AI's Chapter 11 court filings indicate a two-part deal with Disney to transfer talent and tech while insulating Disney from mounting legal liabilities (Maddy Varner/Wired)
The entertainment giant hopes to get trust and safety tech, among other IP, from a startup whose chatbots dozens …
The startup Character.AI, a chatbot company, recently filed for bankruptcy, leading to the potential job opportunities at Disney for many of its employees. Karandeep Anand, the former CEO of Character.AI, has now become the entertainment giant's first CTO. Disney had previously agreed to acquire some of the startup's assets for $20 million.
A legal filing by Bloomberg revealed more details about the agreement between Character.AI and Disney. Disney has committed to offering employment to at least 60 Character.AI employees, making up the majority of the workforce. This agreement is estimated to cost Disney around $60 million in annual compensation. The filing also states that the "vast majority" of Character.AI employees who were offered jobs at Disney have accepted these positions.
However, it is important to note that this is a "stalking horse bid," meaning that another company might enter the scene with a higher offer. Despite having a "large and engaged user base," Character.AI has struggled with high costs and potential litigation-related liabilities, as well as government investigations over child safety concerns.
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