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Character.AI Chapter 11 sale process Ecosystem Developing

Disney offers jobs to most of Character.AI's workforce, report says

TechCrunch reports offers to at least 60 employees as Disney's asset bid sets a starting point for Character.AI's bankruptcy sale.

Sources (2)

Why now An October 18 report adds workforce and compensation details to the ongoing Character.AI sale process, without establishing a completed acquisition or the chatbot service's future.

Storyline / Report 2 of 2

Character.AI bankruptcy and sale process

Latest report
Full timeline 2 reports
  1. Source-backed
    Character.AI files for Chapter 11, warns its chatbot platform could shut down
  2. Developing
    Disney offers jobs to most of Character.AI's workforce, report says (current report)

Disney has agreed to offer jobs to at least 60 Character.AI employees, representing most of the chatbot startup’s workforce, according to an October 18 TechCrunch report. The report adds a substantial staffing component to the company’s bankruptcy sale process, but it does not establish that Disney has completed an acquisition or promised to keep Character.AI’s service running.

Jobs alongside an asset bid

TechCrunch, citing a legal filing spotted by Bloomberg, reports estimated annual compensation of $60 million for the employees receiving offers. It says the filing describes the “vast majority” of those offered jobs as having accepted. That compensation estimate is separate from the $20 million agreement to acquire some Character.AI assets described in the same report; it is not an additional reported purchase price.

The proposed transaction is a stalking-horse bid: an initial offer that provides a starting point in the bankruptcy sale process. Another bidder could still submit a higher offer. Employment offers and acceptances therefore should not be read as confirmation that the asset sale has closed.

The service’s future remains open

Character.AI’s own English announcement says the platform remains online during its court-supervised sale process and subscriptions continue unchanged for now. It says a viable sale could let the service continue, while the absence of an actionable bid could lead to a wind-down. The company expects the process to conclude in late November or early December; that remains its forecast.

For users, the new workforce report is a material development in who may take on Character.AI’s staff and assets. It does not settle what happens to their chatbot conversations or subscriptions after the sale process.