has filed for bankruptcy, with Disney stepping in to hire the majority of its workforce.
At least 60 employees have been offered roles with an estimated annual compensation of $60 million, and most have accepted.
The move follows an earlier stalking horse asset acquisition agreement.
According to court documents, Disney plans to offer jobs to at least 60 employees of the startup, with their total annual salaries estimated at $60 million. The vast majority of those who received an offer have reportedly already accepted it.
The connection with Disney and previous projects
The development comes shortly after former Character.AI head Karandeep Anand took over as Disney's first chief technology officer. It was previously reported that Disney was looking to buy some of the startup's assets for $20 million.
This deal acts as an initial proposal that sets the tone, meaning that another company could theoretically come forward with a higher offer.
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The reasons for bankruptcy
Despite having a large and active user base, Character.AI buckled under the weight of high costs. Potential litigation and regulatory issues also contributed to the problems that led to bankruptcy.
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