# Disney Plans $180 Million AI Talent and Asset Deal as Character.AI Enters Bankruptcy

- URL: https://stocks.freetheai.org/news/disney-plans-180-million-ai-talent-and-asset-deal-as-character-ai-enters-5c2be1
- Published: 2026-10-17T09:33:37Z
- Category: company_news; sentiment: neutral; impact: medium
- Symbols: [NYSE:DIS](https://stocks.freetheai.org/symbols/NYSE-DIS), [NASDAQ:GOOG](https://stocks.freetheai.org/symbols/NASDAQ-GOOG), [NASDAQ:GOOGL](https://stocks.freetheai.org/symbols/NASDAQ-GOOGL)
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The Walt Disney Company (NYSE:DIS) plans to spend $180 million on compensation and retention over three years to recruit 66 employees from Character.AI, along with $20 million for key assets. Disclosure of the arrangement appears in a Chapter 11 bankruptcy filing by Character.AI's parent company. Under the proposed terms, Disney will pay $60 million annually in worker compensation, set aside a $30 million retention pool, and serve as the stalking-horse bidder for selected intellectual property and technology.

The hiring initiative aligns with Chief Executive Officer Josh D'Amaro's effort to expand artificial intelligence capabilities across the enterprise. It follows the mid-September appointment of former Character.AI executive Karandeep Anand as Disney's first corporate tech chief. The spending commitment also comes shortly after Disney conducted its third major round of workforce reductions this year, laying off several hundred employees, including tech personnel.

Attention now turns to the court bankruptcy process, where rival buyers can submit higher offers until November 20. As the stalking-horse bidder, Disney establishes the floor price for the assets, with a final transaction expected in late November or early December subject to court approval. Shares of Disney closed down 0.08% at $110.59 on Friday, down 2.80% year-to-date.

## Key points

- The Walt Disney Company plans to spend $180 million over three years on compensation and retention for 66 Character.AI employees.
- Disney is serving as a stalking-horse bidder, offering $20 million for key Character.AI intellectual property and technology assets.
- The hiring strategy follows Disney's appointment of Karandeep Anand as its first company-wide technology chief in mid-September.
- The spending plan comes shortly after Disney conducted its third round of layoffs this year, cutting several hundred jobs.
- Competing bids for Character.AI's assets are due by November 20, with court approval expected in late November or early December.

## Questions and answers

### How much is Disney spending on Character.AI employees?

Disney expects to spend $180 million over three years on compensation and retention for 66 Character.AI employees, including $60 million annually in pay and a $30 million retention pool.

### What assets is Disney acquiring from Character.AI?

Disney agreed to pay $20 million as a stalking-horse bidder for key Character.AI assets, including intellectual property and technology, subject to higher competing bids due by November 20.

### Who is leading Disney's AI technology initiative?

Disney CEO Josh D'Amaro is leading the strategy, following the mid-September appointment of former Character.AI chief Karandeep Anand as Disney's first company-wide technology officer.