# Disney to spend $180M on Character.AI staff after bankruptcy

> Disney is hiring Character.AI employees as the chatbot platform files for Chapter 11, with pay and retention costs totalling $180M over three years.
- Title: Disney to spend $180M on Character.AI staff after bankruptcy
- Summary: Disney is hiring Character.AI employees as the chatbot platform files for Chapter 11, with pay and retention costs totalling $180M over three years. Disney…
- Keywords: disney, character.ai, bankruptcy, chapter 11, ai talent, acquisition, technology, startups, spend, 180M, Character, staff
- Source: The Next Web — https://thenextweb.com/news/disney-character-ai-staff-180m-bankruptcy-filing
- Author: Ana-Maria Stanciuc
- Published: 2026-10-19T12:42:46+00:00
- Read time: 1 min
- Topics: disney, character.ai, bankruptcy, chapter 11, ai talent, acquisition, technology, startups
## Disney's $180M Character.AI deal
Disney expects to spend about one hundred eighty million dollars over three years on Character.AI staff it is hiring, covering pay and retention, a bankruptcy court filing shows.
## The pay package breakdown
Disney estimates yearly pay for about sixty five employees at roughly sixty million dollars, including salary, bonus and Disney stock. It will also fund a thirty million dollar retention pool.
## Why Character.AI needed a buyer
Character.AI faced mounting employee attrition, uncertain equity value and shrinking cash. The market for AI talent is extremely competitive. Potential buyers cited litigation and regulatory risks as barriers.

> The litigation and regulatory overhang on Character was too great.
## Disney's bankruptcy condition
Disney required the transaction be fully consummated in a Chapter eleven sale process, citing Character.AI's shrinking cash and litigation and regulatory risks. Disney takes on none of the company's liabilities.

> Disney required that the transaction be fully consummated in a chapter 11 sale process.
## Auction timeline and next steps
Rival bids are due by twenty November. If any arrive, an auction follows on twenty three November, with a sale hearing on twenty four November. If no buyer emerges, Character.AI will wind down.
## Key takeaway

Disney is acquiring Character.AI's technology and hiring up to 66 staff for $180M over three years as the platform enters Chapter 11 bankruptcy protection.