Disney offers $60M in pay to absorb Character.AI staff and assets
Disney moves to hire at least 60 workers and purchase assets for $20 million following the startup's bankruptcy filing.
Disney has agreed to extend employment offers to at least 60 workers from Character.AI, backing the hires with an estimated $60 million in annual compensation [1]. The arrangement follows Character.AI's early October 2026 bankruptcy filing and includes a $20 million transaction to acquire selected assets from the startup [2].
Founded in 2021, Character.AI built conversational artificial intelligence systems before running into financial distress [1, 2]. The absorption comes after a contentious period between the two entities; Disney sent a cease-and-desist notice to the startup in September 2025 [1].
The hiring deal also builds on executive shifts at the entertainment conglomerate. Disney chief executive Josh D’Amaro recently selected Karandeep Anand, the former CEO of Character.AI, to serve as Disney’s first-ever chief technology officer [1]. Anand had joined Character.AI as an adviser before stepping into the chief executive seat in May 2025, following a six-year tenure at Facebook and 15 years at Microsoft [1].
Questions and answers
How much is Disney spending on the Character.AI workforce and assets?
Disney agreed to purchase selected assets for $20 million and offer an estimated $60 million in annual compensation to at least 60 employees.
What executive role did Karandeep Anand take at Disney?
Disney CEO Josh D’Amaro named Anand as Disney's first-ever chief technology officer.
Companies & investors in this story
Sources
- 1.Disney’s first CTO led an AI startup it once accused of copying its characters — TechCrunch AI, Sep 18, 2026
- 2.Disney agrees to hire the majority of Character.AI’s workforce — TechCrunch AI, Oct 18, 2026