Krafton CEO Changhan Kim is facing legal and reputational fallout after using ChatGPT to design a strategy to avoid paying a $250 million bonus tied to Subnautica 2. A Delaware court ruled against Krafton, reinstating the fired studio leadership and ordering the payout, calling the AI-driven plan disingenuous.
In 2021, Krafton acquired Unknown Worlds Entertainment, creators of Subnautica, for $500 million. The deal included a $250 million earnout if Subnautica 2 met sales targets. In 2026, CEO Changhan Kim allegedly consulted ChatGPT to devise a plan to sidestep the payout by removing studio heads. The court has now reversed the move.
How The Controversy Unfolded
• ChatGPT suggested “Project X,” a corporate restructuring plan to avoid the bonus.
• Krafton removed Unknown Worlds’ leadership, citing “quality concerns.”
• Employees sued, claiming the move was a deliberate attempt to dodge contractual obligations.
• Delaware Vice Chancellor Lori Will ruled Krafton acted in bad faith, reinstating the studio’s leadership and extending the bonus deadline.
Court’s Response
The court emphasized that executives must exercise independent judgment and cannot outsource critical corporate decisions to AI. The ruling highlighted the risks of relying on generative AI for legal or financial strategies, especially when contractual obligations are at stake.
Industry Impact
This case has sparked debate about the role of AI in corporate governance. While AI tools can assist with efficiency, experts warn that using them to bypass legal commitments undermines trust and exposes companies to litigation. Krafton’s reputation has taken a hit, with investors and the gaming community questioning its ethics.
Key Highlights
• Krafton CEO used ChatGPT to avoid $250M Subnautica 2 bonus payout
• Delaware court reinstated Unknown Worlds’ leadership and ordered payout extension
• Court criticized reliance on AI for corporate legal decisions
• Case raises concerns about AI misuse in business strategy
Sources: Mint, Hindustan Times, Yahoo Finance, The News International