TLDR Tech / News
Disney's deal with Character.AI prioritizes talent over tech
Disney's Chapter 11 filing reveals a $20 million perpetual license for Character.AI's technology, coupled with $180 million budgeted over three years for 66 engineers. This arrangement suggests that the primary value in consumer AI comes from the skilled individuals who create engaging user experiences, rather than the technology itself. Character.AI encountered significant operational expenses and difficulties retaining users prior to Disney hiring many of its engineering team.
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