According to legal filings, Disney has agreed to offer positions to at least 60 employees—majority of the workforce—from the bankrupt chatbot company Character.AI, with an estimated annual compensation expenditure of approximately $60 million. The filings indicate that the vast majority of Character.AI employees offered roles have already accepted the offers;

The agreement also involves Disney acquiring certain assets of Character.AI for $20 million, though this remains part of a "lead bidding" process, allowing other companies to submit higher bids. Character.AI had previously faced allegations of high operational costs, potential litigation liabilities, and regulatory investigations; its former CEO Karandeep Anand recently assumed the role of Disney’s first Chief Technology Officer.