Disney to Spend $60 Million a Year on Character.AI Talent After Its Own Layoffs as AI Startup Faces Bankruptcy
Key takeaways
- Disney is investing heavily in AI talent and assets from a bankrupt competitor, signaling a strategic pivot toward AI even as it cuts tech staff.
- $60 million annual payroll for 66 employees
- $20 million asset payment
- $30 million retention pool
What happened
Walt Disney Co. announced it will pay $60 million a year to hire 66 former Character.AI employees after the AI startup filed for Chapter 11 bankruptcy. The deal is part of Disney’s broader AI push under CEO Josh D’Amaro, who hired Character.AI CEO Karandeep Anand as the company’s first tech chief. Disney is also setting aside $30 million for a retention pool and will pay $20 million for key assets, including intellectual property and technology. The sale of Character.AI is expected to close in…
Why it matters
The move signals Disney’s commitment to building an AI ecosystem, even as it trims its own tech workforce. By securing talent and assets from a bankrupt competitor, Disney can accelerate its AI capabilities without the costs of a full acquisition. The $60 million annual payroll and $20 million asset payment represent…
Short-term and longer-term
Short-term. In the next few days, watch for a potential uptick in Disney shares as the market digests the AI talent acquisition.
Longer-term. Over the next few months, the acquisition could strengthen Disney’s long‑term competitive edge in AI‑driven content.