Despite the warnings, Kim turned to ChatGPT for advice. According to court findings, the AI initially said it would be difficult to avoid paying the bonus.
A US court has ordered South Korean gaming company Krafton to restore the leadership of one of its own studios after removing them in an attempt to avoid paying a large bonus.
The issue began when Krafton bought Unknown Worlds Entertainment in 2021 for $500 million. The studio is best known for creating the popular game Subnautica. As part of the agreement, Krafton vowed to pay an extra $250 million if the sequel, Subnautica 2, achieved certain sales targets.
The deal also allowed the studio to operate independently, with its leaders staying in charge unless there was a valid reason to remove them.
Concerns over bonus payment
As the sequel moved closer to release, internal forecasts suggested that the bonus conditions would likely be met.
According to a report by Fortune, Krafton’s CEO, Changhan Kim, believed the agreement was unfavourable and felt the company had made a poor deal. His legal team warned that removing the studio’s leadership would not cancel the bonus payment and could lead to legal trouble.
AI advice and ‘Project X’ plan
Despite the warnings, Kim turned to ChatGPT for advice. According to court findings, the AI initially said it would be difficult to avoid paying the bonus.
“Fearing he had agreed to a ‘pushover’ contract, KRAFTON’s CEO consulted an artificial intelligence chatbot to contrive a corporate ‘takeover’ strategy,” Delaware’s Court of Chancery Vice Chancellor Lori Will wrote in a ruling.
However, it was later suggested creating an internal strategy, known as “Project X”, to renegotiate the deal or take control of the studio.
The plan included:
- Gaining control over publishing rights on platforms like Steam
- Taking charge of the game’s code
- Presenting the issue as one of game quality and player trust
- Preparing legal arguments and public messaging
- Backlash and Leadership Removal
The plan caused concern within the gaming community, raising doubts about the studio’s stability.
Soon after, key leaders – including co-founders and the CEO – were removed from their positions.
Court ruling
The court criticised Krafton’s actions, stating that company leaders must make independent decisions rather than relying on artificial intelligence for major business choices. It ruled that the removals were unjustified.
Leaders reinstated, timeline extended
Under the ruling, Gill has been restored as CEO and granted the authority to reinstate the co-founders. The earn-out period has also been extended to compensate for the disruption caused.
Krafton responds
Krafton has said it disagrees with the court’s decision and is considering its next steps. The company added that it remains focused on delivering the best possible version of Subnautica 2 and is working hard towards its early access launch.
About the Author
Kanishka Singharia
Kanishka Singharia is a Senior Content Producer at Mint with a passion for news, trends, and the stories shaping the digital world. She specialises in spotting viral narratives by constantly tracking social media platforms and turning them into engaging, reader-friendly stories. Her work ranges from fast-paced breaking updates to sensitive human-interest features, blending speed with clarity.
With over four years of experience in news and trend reporting, Kanishka has worked with leading organisations such as Hindustan Times and Times Now. She moves seamlessly between profiling business leaders and telling the stories of everyday people, covering national developments just as effortlessly as the memes and conversations that dominate online culture.
She also reports on real estate developments and civic challenges in major urban hubs like Bengaluru, Delhi, and Gurugram. Her coverage frequently explores the struggles of startup founders, inspiring journeys of CEOs, and the experiences of candidates dealing with the complexities of visa processes.
Kanishka holds an undergraduate degree in Journalism from Delhi University and a diploma from the Indian Institute of Mass Communication. Rarely offline, she spends much of her time scrolling through X, LinkedIn, Reddit, Instagram, and Facebook in search of the next big story. When she finally logs off, she enjoys binge-watching shows and exploring cafes in pursuit of good food and better conversations.
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