Disney to hire 60+ former Character.AI staff, pay ~$180 M over three years plus $30 M in retention awards, pending bankruptcy judge approval.
layoffs
| Source: Techmeme | Original article
Disney will hire over 60 former Character.AI employees, paying about $180 million over three years plus $30 million in retention awards, pending bankruptcy court approval.
Disney has reached a deal to absorb more than 60 employees from the AI start‑up Character.AI, according to a filing reported by Bloomberg. The media conglomerate will pay roughly $180 million over three years for the hires, with an additional $30 million earmarked for retention awards. The arrangement still requires the sign‑off of a bankruptcy judge, as Character.AI is currently navigating insolvency proceedings.
The move offers a “soft landing” for staff who faced layoffs amid the start‑up’s financial distress, and signals Disney’s intent to bolster its own generative‑AI capabilities with seasoned talent. By securing a sizable pool of engineers and researchers, Disney could accelerate projects ranging from interactive character experiences to content‑creation tools, narrowing the gap with rivals that have already integrated AI talent.
The deal also illustrates how large corporations are positioning themselves in the AI talent market, especially when smaller innovators stumble. For Disney, the financial commitment—$210 million in total—underscores a willingness to invest heavily in AI expertise, even as the broader industry grapples with legal and insurance challenges tied to AI safety and liability.
Key watch points include the bankruptcy court’s decision, the timeline for integrating the new hires, and any subsequent announcements about Disney’s AI roadmap. Observers will also monitor how Character.AI’s remaining assets are handled and whether similar talent‑acquisition arrangements emerge as other AI firms confront fiscal strain.
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