Startups·18 October 2026·1 min readTechnical readSource-backed

Disney agrees to hire the majority of Character.AI’s workforce

WIREUNWIRED BRIEF

The Walt Disney Company has agreed to make employment offers to at least 60 workers from the bankrupt chatbot startup Character.AI. The arrangement will provide the majority of the startup's workforce with an estimated $60 million in annual compensation. According to a legal filing uncovered by Bloomberg, the vast majority of Character.AI employees who received offers have already accepted them.

The hiring agreement follows a previous announcement that Disney would acquire certain startup assets for $20 million. Former Character.AI CEO Karandeep Anand recently joined Disney as its first chief technology officer. Despite operating a large and engaged user base, Character.AI filed for bankruptcy after struggling with high operating costs, regulatory scrutiny, and potential litigation liabilities.

The startup faced government investigations regarding child safety and a lawsuit filed by the mother of a 14-year-old boy. The agreement functions as a stalking horse bid, meaning competing companies can still step forward with higher offers for the assets. It remains uncertain whether another buyer will challenge the current arrangement.

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TechCrunch

Original author: Anthony Ha

Original publication: 18 October 2026 22:00

Read full story on TechCrunch ↗

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STORY TITLE:
Disney agrees to hire the majority of Character.AI’s workforce
SOURCE:
TechCrunch
ORIGINAL URL:
https://techcrunch.com/2026/10/18/disney-agrees-to-hire-the-majority-of-character-ais-workforce/

SOURCE EXCERPT:
After chatbot startup Character.AI filed for bankruptcy earlier this week, many of its employees will have the opportunity to take jobs at Disney. Character.AI’s former CEO Karandeep Anand recently became the entertainment giant’s first CTO, and the startup previously said that Disney had agreed to acquire some of its assets for $20 million. A legal [&#8230;]

Last updated 18 October 2026 23:02

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