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Disney Pays $60 Million to 66 Character.AI Staffers After Tech Layoffs
Business Insider • • business
Key Points:
- Disney plans to pay $60 million annually to hire 66 employees from the bankrupt AI chatbot startup Character.AI, as part of its broader AI strategy under CEO Josh D'Amaro.
- The company is also allocating an additional $30 million for retention incentives, expecting to spend $180 million on total compensation and retention for these staffers over three years.
- This hiring move follows Disney's recent layoffs, including tech workers, marking the third major round of cuts since D'Amaro became CEO in March.
- Disney agreed to pay $20 million for Character.AI's key assets, with the bankruptcy court overseeing the sale and allowing competing bids until November 20.
- Character.AI filed for bankruptcy amid lawsuits related to user safety concerns, and Disney had previously issued a cease-and-desist to prevent unauthorized use of its copyrighted characters in AI chatbots.
