Disney acquires Character.AI assets, hires most of its workforce

Character.AI, an AI chatbot startup, filed for bankruptcy this week but secured a path forward: Disney agreed to acquire some of its assets for $20 million and hire the majority of its workforce. Character.AI's former CEO Karandeep Anand recently became Disney's first Chief Technology Officer, a position that helped facilitate the deal.

The acquisition represents a partial recovery for Character.AI investors and employees after the startup's struggles. Employees now have an option to transition to Disney rather than face total job loss from the startup's collapse.