Disney has agreed to make employment offers to at least 60 Character.AI employees — the majority of the chatbot startup's workforce — according to a bankruptcy filing spotted by Bloomberg and reported by TechCrunch on October 18. The offers carry an estimated $60 million in combined annual compensation, and the filing says the vast majority of employees who received offers have already accepted them.

The hiring sits alongside Disney's earlier agreement to acquire some of Character.AI's assets for $20 million. That deal is a stalking horse bid, so another company could still come forward with a higher offer before the sale closes.

Character.AI filed for bankruptcy earlier in October despite a large, engaged user base; the filing blames high costs and potential litigation and regulatory exposure. The startup faces a lawsuit from the mother of a 14-year-old who died by suicide after becoming obsessed with one of its chatbots, plus government investigations over child safety. Its former CEO, Karandeep Anand, recently became Disney's first chief technology officer.