Character.AI Bankruptcy Details Revealed: Disney Planned to Spend $180 Million Over Three Years to Retain Staff, Platform Left with Only 18 Employees

Beating AI News Flash: Before Character.AI filed for bankruptcy, Disney had already extended job offers to its 66 employees. Of these, 56 have already left, and another 10 are awaiting work visa adjustments. According to bankruptcy court documents, Disney expects to invest approximately $180 million in this group of employees over the next three years, including $30 million in retention bonuses.

In contrast, Disney's offer for some of Character.AI's technology and patents is only $20 million, in exchange for permanent, non-exclusive usage rights. The agreement explicitly excludes the existing app, brand, user chat records, and finished models. Disney does not intend to take over the entire chat platform.

When Character.AI filed for bankruptcy, it had only 18 full-time employees left, 10 of whom are still waiting to move to Disney. The company expects only 8 people to remain through the critical stage of the bankruptcy proceedings, with about 6 responsible for safety-related work. Due to insufficient staffing, Disney will also bring back some employees who have already transferred to temporarily help maintain operations of the original platform.

Meanwhile, 40 U.S. state attorneys general have intervened in the bankruptcy proceedings, demanding protection of users' private chat records to prevent these data from being misused after the asset sale. Other buyers can submit competing bids before November 20. If ultimately no one is willing to continue operating the service, Character.AI will shut down.