Disney to Hire 66 Former Character.AI Staff with $60 Million Annual Pay Package

Disney announced plans to bring 66 former employees of the bankrupt AI chatbot startup Character.AI onto its payroll, allocating $60 million annually for their compensation. The company will also set aside $30 million for a retention pool aimed at keeping the new hires for the next three years, bringing total projected outlays to $180 million.

The move follows Disney's recent tech workforce reductions and aligns with CEO Josh D'Amaro's push to strengthen the company's artificial-intelligence capabilities. Disney also agreed to pay $20 million for select Character.AI assets, including intellectual property and technology, with other firms allowed to submit competing bids by late November.

"They're highly compensated employees. The numbers can be eye-popping, but it's not unusual in this space," said entertainment lawyer Corey Martin, who advises on media transactions.

"What stands out most is the talent and care this team puts into its work, the craft Disney has perfected, and the strong foundation you've built," said Karandeep Anand, the former Character.AI CEO who was hired as Disney's first company-wide tech chief.

Of the 66 hires, 56 have already left Character.AI, while the remaining ten await U.S. work-visa approvals. The hiring comes two weeks after Disney's latest round of layoffs, which included several hundred tech staff.

Character.AI filed for Chapter 11 bankruptcy after facing lawsuits alleging that its chatbots contributed to self-harm among teenagers. The startup previously settled child-safety claims and complied with a cease-and-desist request from Disney to stop using the company's copyrighted characters in its bots.