Disney to hire most of Character.AI's workforce

Disney agreed to hire the majority of Character.AI's workforce, and a filing says the vast majority of employees offered jobs accepted. The deal is a stalking horse bid, so another company could still come forward with a higher offer.

Why it matters: This is an acqui-hire-style exit for a consumer chatbot company, continuing a pattern of big firms absorbing AI talent rather than buying whole companies. It also lands amid state lawsuits over chatbot child safety, hinting at how liability-laden companionship products get unwound.