Disney agrees to hire the majority of Character.AI’s workforce
News Source
•Sun, 18 Oct 2026 16:30:00 +0000
📰 What Happened
Chatbot company Character.AI filed for bankruptcy this week. Many of its staff will now get job offers from Disney, according to a legal filing seen by Bloomberg.
Disney has agreed to offer jobs to at least 60 Character.AI workers, most of the company. Their pay would total about $60 million a year. The filing says most of them accepted.
The filing also says Disney will buy some of the company's assets for $20 million. Because this is a first bid, another buyer could still offer more.
🔍 The Backstory
Character.AI lets people chat with made-up characters. It built a large base of users and was once seen as a rising star.
But the company struggled with high costs and legal trouble. It was sued by the mother of a 14-year-old boy who killed himself after using its chatbots. It also faces government checks over child safety.
The company's former CEO, Karandeep Anand, recently became Disney's first chief technology officer. That link helped set up the deal.
🎯 Why It Matters
Millions of people use chatbot apps, and many of them are young. This case shows how fast a popular app can fail, and why safety rules matter.
Chatbot company Character.AI filed for bankruptcy this week. Many of its staff will now get job offers from Disney, according to a legal filing seen by Bloomberg.
Disney has agreed to offer jobs to at least 60 Character.AI workers, most of the company. Their pay would total about $60 million a year. The filing says most of them accepted.
The filing also says Disney will buy some of the company's assets for $20 million. Because this is a first bid, another buyer could still offer more.
Character.AI lets people chat with made-up characters. It built a large base of users and was once seen as a rising star.
But the company struggled with high costs and legal trouble. It was sued by the mother of a 14-year-old boy who killed himself after using its chatbots. It also faces government checks over child safety.
The company's former CEO, Karandeep Anand, recently became Disney's first chief technology officer. That link helped set up the deal.
Millions of people use chatbot apps, and many of them are young. This case shows how fast a popular app can fail, and why safety rules matter.