Krafton CEO's ChatGPT Plot to Kill $250M Bonus Fails
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- Krafton CEO Changhan Kim turned to ChatGPT to oust Unknown Worlds' co-founders Charlie Cleveland and Max McGuire and CEO Ted Gill after his legal team warned that even a 'dismissal with cause' would still trigger the $250m earnout tied to the studio's 2021 acquisition.
- ChatGPT initially told Kim the earnout would be 'difficult to cancel,' then suggested forming an internal taskforce — dubbed Project X — whose mandate was to either renegotiate the earnout or execute a 'Take Over' of the studio.
- Krafton implemented most of ChatGPT's recommendations over the following month, including a fan-trust communications strategy, securing publishing rights over Subnautica 2, and preparing 'systematic material of legal defense,' according to Vice-Chancellor Lori Will's ruling.
- Delaware Court of Chancery Vice-Chancellor Lori Will rejected Krafton's claim that Unknown Worlds' leadership had deceived the company about diminishing time at the studio, ordering operational control returned to CEO Ted Gill.
- The court also extended the period in which Unknown Worlds could meet earnout criteria, meaning the $250m payment Kim tried to avoid could still come due to the studio.
- Krafton said it disagreed with the ruling and was evaluating its options, while pledging to deliver the 'best possible' Subnautica 2 early access release.
Why it matters: Krafton now faces a reinstated studio leadership it tried to oust, plus an extended deadline during which Unknown Worlds could still hit its earnout targets — meaning the $250m Kim tried to dodge could still come due. The case also puts a spotlight on executives leaning on AI chatbots for corporate strategy after their own legal teams warned them off.
