Disney offers 60 Character.AI workers $60m in annual pay

Disney agreed to offer jobs to at least 60 Character.AI employees, covering a majority of the bankrupt chatbot startup’s workforce, according to a legal filing reported by TechCrunch on Oct. 18.

The filing said Disney would pay the employees an estimated $60 million in annual compensation, alongside a previously disclosed $20 million asset purchase under a stalking-horse process that allows higher bids.

A stalking-horse bid is an initial bankruptcy offer that sets a floor for an asset sale. In this case, the arrangement gives Disney a route to hire AI staff and acquire selected Character.AI assets, while another company could still submit a superior proposal.

The filing said the “vast majority” of Character.AI employees who received Disney offers accepted them. It did not give the exact number of acceptances, according to the TechCrunch report.

The hiring agreement follows Character.AI’s bankruptcy filing earlier this week. Karandeep Anand, Character.AI’s former chief executive, recently became Disney’s first chief technology officer, according to TechCrunch.

The filing said Character.AI had a “large and engaged user base” but was constrained by high costs, “potential litigation-related liabilities and regulatory engagement.” TechCrunch reported that the company has faced a lawsuit brought by the mother of a 14-year-old boy and government investigations tied to child-safety concerns.

For Disney, the deal would bring in AI talent and technology after earlier disputes involving Character.AI. Atlas360 reported in October that Disney had bid $20 million for Character.AI technology during the bankruptcy process.

No final sale is assured while the stalking-horse process remains open to higher offers.

Source: Legal filing reported by TechCrunch, Oct. 18, 2026