How much is Disney paying to bring in the Character.AI staff?

Disney plans to pay $60 million per year to 66 Character.AI workers. It is also setting aside $30 million for a retention pool and expects $180 million in total compensation and retention over three years.

Do all 66 Character.AI staffers start right away?

56 of the 66 have already resigned from Character.AI, while the other 10 are waiting for the US government to update their work visas.

What is happening to Character.AI's technology and intellectual property?

Disney agreed to pay $20 million for Character.AI's key assets, including some of its IP and tech. Other companies can submit competing bids by November 20, and a bankruptcy court judge will oversee the process.

Large Language ModelsTop Companies' AI MovesAI Business & IndustryTop Companies AI10m agoOct 19, 2026, 06:30 JST

Disney to pay $60 million a year for 66 Character.AI staffers

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3 Key Points

What happened
Disney plans to pay $60 million per year to 66 Character.AI workers, per a Chapter 11 filing. It set aside $30 million more as a retention pool and expects $180 million in total compensation and retention over three years.
Why it matters
The hiring comes two weeks after Disney laid off several hundred workers, including some tech employees, and the filing shows Disney is paying for outside AI talent even as it trims its own tech workforce.

WHO IT HITSDisney's own technology and HR teams face a reshaped AI strategy, with outside Character.AI staff joining while hundreds of internal workers were recently cut. The bankruptcy court's asset sale process could also affect Character.AI's remaining employees and creditors.

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Context & Analysis

Character.AI's bankruptcy filing follows lawsuits from families who alleged that their teenagers harmed themselves or committed suicide after using the company's custom AI chatbots. The startup and Google, one of its backers, settled several child safety lawsuits earlier this year. Before the bankruptcy, Disney had sent a cease-and-desist letter to Character.AI last fall, telling it not to create AI chatbots featuring its copyrighted characters without permission, and Character.AI complied by removing chatbots with characters from Disney franchises like Star Wars and Marvel.

The hiring also sits alongside Disney's broader cost moves. Disney's decision to bring in the Character.AI staffers came two weeks after it laid off several hundred workers, including some tech employees, and the late-September cuts were Disney's third major round of layoffs since CEO Josh D'Amaro took over in mid-March. D'Amaro has been investing in the media giant's tech platforms to help jumpstart a stagnant stock that's up less than 2% in the last 12 months and is down over 36% in the last five years.

Entertainment lawyer Corey Martin of Granderson Des Rochers, who advises companies on media transactions, said he's not surprised by the pay figures since Character.AI's employees are its biggest asset. "They're highly compensated employees. The numbers can be eye-popping, but it's not that unusual in this space," said Martin, who didn't work on the deal or with Disney.

FAQ

How much is Disney paying to bring in the Character.AI staff?: Disney plans to pay $60 million per year to 66 Character.AI workers. It is also setting aside $30 million for a retention pool and expects $180 million in total compensation and retention over three years.
Do all 66 Character.AI staffers start right away?: 56 of the 66 have already resigned from Character.AI, while the other 10 are waiting for the US government to update their work visas.
What is happening to Character.AI's technology and intellectual property?: Disney agreed to pay $20 million for Character.AI's key assets, including some of its IP and tech. Other companies can submit competing bids by November 20, and a bankruptcy court judge will oversee the process.

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