Disney to Absorb Character.AI Workforce Following Startup’s Bankruptcy

18 Oct 2026, 10:00 pm · 2h ago · 1 min read · TechCrunch AINew

Amount

$20M

Lead

Disney

Disney has agreed to hire the majority of workforce from artificial intelligence startup Character.AI following its recent bankruptcy filing. Character.AI’s former chief executive officer, Karandeep Anand, recently joined the entertainment conglomerate as its first chief technology officer. As part of ongoing legal proceedings, the chatbot company had previously disclosed an agreement with Disney to acquire select startup assets for $20 million. The transition allows Disney to integrate valuable generative AI talent and proprietary conversational tools directly into its technology division, providing stability for engineers amid significant consolidation and financial turbulence across consumer AI startups.