Krafton CEO Used ChatGPT to Try and Dodge $250M Bonus Payment to Subnautica Devs, Fails in Court

A multi-million-pound corporate showdown has taken a surreal turn after the CEO of Subnautica publisher Krafton reportedly bypassed his own legal team to consult ChatGPT.

The executive turned to the AI in a desperate bid to void a multi-million-dollar bonus contract, sparking a high-stakes legal battle over the future of the hit franchise's creators. What started as a tech-driven 'legal hack' has now landed the gaming giant in a South Korean court to face the consequences of its digital gamble.

A Chatbot-Led Corporate Coup

A US court has forced a South Korean games firm to reinstate the leaders of its own studio after a plot involving ChatGPT was uncovered. The publisher reportedly used the AI to engineer the removal of the executives in an attempt to dodge a $250 million (£187.01 million) payout. Following the legal challenge, the firm must now undo the ousting that it orchestrated through the chatbot.

The conflict traces back to 2021, when the South Korean gaming firm Krafton paid $500 million (£374.02 million) to buy Unknown Worlds Entertainment, the studio behind Subnautica. This massive takeover laid the groundwork for the current legal battle over the terms of the original sale.

Under the initial deal, the firm promised the studio would keep its autonomy and that its executives would stay in charge unless there was a legal reason to dismiss them. This detail was highlighted by Vice-Chancellor Lori Will in the Delaware Court of Chancery, who noted that the original agreement protected the leadership's control.

Buyer's Remorse and the $250M Trigger

The agreement included a performance-based bonus worth $250M if the studio hit specific milestones. While the team prepared to launch Subnautica 2 last year, internal forecasts indicated they were on track to secure the full payout, according to the court's findings.

The court's findings further suggest Krafton boss Changhan Kim grew to regret the agreement, viewing it as a 'bad deal' that left him feeling 'taken advantage of'. This personal frustration apparently fueled the executive's motivation to challenge the terms of the original acquisition.

The firm's own legal team cautioned that the multimillion-pound bonus would still be due, even if the studio's top bosses—Ted Gill and co-founders Max McGuire and Charlie Cleveland—were fired for a legal reason. Beyond the financial hit, the department also noted that such a move would put the company's public image and legal standing at serious risk.

The Birth of 'Project X'

According to the judge, Kim then consulted ChatGPT for a solution. While the AI initially cautioned that the payout would be 'difficult to cancel', Kim eventually followed its advice to assemble a secret team known as 'Project X'. As Will noted in her ruling, the group was tasked with either forcing a new agreement or launching a 'Take Over of Unknown Worlds.' Their strategy, she stated, was to 'buy time' through these manoeuvres.

The plan detailed several steps, such as managing the game's community to maintain player loyalty and seizing control of the rights to Subnautica 2. It also focused on building a 'systematic material of legal defense' to protect the company's position. According to the judge's opinion, the gaming giant spent the following month putting the majority of the AI's suggestions into practice.

When the studio's bosses refused to lower their bonus demands, Krafton fired them, claiming they had misled the firm about their reduced workload at the office. However, the judge dismissed this allegation, finding that the publisher's reasons for the termination were merely a cover for its financial motives.

Court Restores Studio Independence

The judge ruled that management of the company must be handed back to its CEO, Ted Gill. In addition to restoring his authority, she granted the team more time to reach the specific milestones required to secure their bonus.

In a public response, the gaming firm expressed its disagreement with the court's decision and noted it is currently considering its next move. Despite the legal setback, the company claimed it stays committed to providing a high-quality experience for its audience. It added that staff are working 'tirelessly' to refine the Subnautica follow-up as they get it ready for its debut in early access.