Details of Character.AI’s bankruptcy have been revealed: Disney plans to spend $180 million over three years to retain staff, and the platform now has only 18 employees.

Beating AI News Flash: Before Character.AI filed for bankruptcy, Disney had already extended job offers to 66 of its employees. 56 have left the company, while 10 are awaiting work visa adjustments. According to bankruptcy court documents, Disney plans to invest approximately $180 million in these employees over the next three years, including $30 million in retention bonuses. In comparison, Disney’s bid for some of Character.AI’s technology and patents is only $20 million, in exchange for permanent, non-exclusive usage rights. The agreement explicitly excludes existing apps, brands, user chat logs, and finished models; Disney does not intend to take over the entire chat platform. When Character.AI filed for bankruptcy, it only had 18 full-time employees left, 10 of whom are still waiting to join Disney. The company expects only 8 employees will remain through critical bankruptcy stages, with around 6 handling security-related work. Due to staffing shortages, Disney will also temporarily recall some employees who have transitioned roles to help maintain operations on the original platform. Meanwhile, 40 U.S. state attorneys general have intervened in the bankruptcy process, demanding protection of users’ private chat logs to prevent the data from being misused after asset sales. Other bidders may submit acquisition offers by November 20. If no party agrees to continue operations, Character.AI will shut down its services.