Disney structures deal to acquire Character.AI staff and technology
According to WIRED, Disney structured a two-stage transaction on October 20 that gives the company a worldwide license to Character. AI’s code and allows it to retain most of the startup’s 66 employees, while the bankrupt firm remains liable for ongoing lawsuits. The deal follows Character.
AI’s filing for Chapter 11 bankruptcy on October 13, as reported by CNN, which noted Disney’s $20 million offer for part of the startup’s intellectual property. Futurism added that the bankruptcy stemmed from high compute costs and low revenue. Business Insider later reported that Disney will employ the 66 former staff with an annual $60 million salary package and a $30 million retention pool.
Actors
Character.ai
The Walt Disney Company
Karandeep Anand
Noam Shazeer
Daniel de Freitas
Locations
Florida, United States
Washington, DC, United States
