From Startup Fortune · · 1m 30s
Disney hires Character.AI CEO after legal threat
Disney appoints former Character.AI CEO as its first CTO after acquiring its tech stack.
In brief
Disney appoints former Character.AI CEO as its first CTO after acquiring its tech stack. Disney hired Character.AI's former CEO Karandeep Anand as its first CTO after paying $20 million for the company's code, which collapsed due to legal issues. Originally reported by Startup Fortune.
Disney acquires Character.AI tech
Disney paid $20 million for Character.AI's code and patents after the company filed for Chapter 11 bankruptcy.
Karandeep Anand becomes Disney's CTO
Anand, Character.AI's former CEO, joins Disney as its first CTO reporting directly to CEO Josh D'Amaro.
Disney's legal threat to Character.AI
Disney's lawyers sent Character.AI a cease and desist letter accusing it of training chatbots without authorization on Disney's copyrighted works.
Character.AI bankruptcy details
Character.AI filed for Chapter 11 bankruptcy on October 12 in the U.S. Bankruptcy Court for the District of Delaware.
Disney's $20 million acquisition
Disney offered $20 million for a non-exclusive, perpetual license to Character.AI's training, safety and serving systems plus nine patents.
Disney hires 66 employees
Disney has offered jobs to 66 of Character.AI's 86 full-time employees with $180 million compensation over three years.
Acqui-hire pattern
Disney's move follows Google's 2024 acqui-hire of Character.AI's founders and technology without buying the company.
Disney's reasoning for hire
Disney needed AI product experience without the legal risks of owning Character.AI's platform.
What happens next
The Character.AI app may go dark if no rival bidder emerges by late November or early December.
The short version
Disney hired Character.AI's former CEO Karandeep Anand as its first CTO after paying $20 million for the company's code, which collapsed due to legal issues.
