Krafton CEO Under Fire: Accused of Querying ChatGPT on How to Dodge Developer Bonuses
A dramatic legal battle has erupted between Krafton, the South Korean gaming giant, and former executives of Unknown Worlds, the studio behind the acclaimed Subnautica series. At the heart of the dispute lies a staggering $250 million bonus tied to the anticipated release of Subnautica 2. The former leaders allege that Krafton's CEO, Changhan Kim, cynically turned to artificial intelligence, specifically ChatGPT, to find a way to circumvent paying this substantial sum.
The $250 Million Question and an Unexpected Acquisition
The controversy stems from Krafton's 2021 acquisition of Unknown Worlds for approximately $500 million. A significant portion of this deal, a cool $250 million, was contingent upon the successful launch of Subnautica 2. However, according to documents filed in a lawsuit spearheaded by Fortis Advisors on behalf of the studio's former leadership, CEO Changhan Kim allegedly sought to exploit loopholes to withhold these funds following the abrupt dismissal of key personnel.
Dismissed Leaders and a Guaranteed Payout?
The lawsuit specifically names Charlie Cleveland, Ted Gill, and Max McGuire as the three primary leaders of Unknown Worlds who were terminated. These individuals collectively held 90% of the bonus pool, making their potential payout the lion's share of the performance-related remuneration for Subnautica 2. Their dismissal occurred shortly after an internal Krafton projection indicated that the game could generate $191 million in profit early on. This projection, under the terms of their agreement, seemingly rendered the bonus almost a certainty, provided the game met its release schedule.
Krafton's Shifting Narrative: From Game State to Accusations
Krafton, in its defense, has maintained that the firings were not motivated by a desire to avoid bonus payments but rather by concerns over the developmental state of Subnautica 2. An internal review in May 2025 reportedly revealed that the game was approximately 30% incomplete. The company later pivoted its narrative, leveling accusations against the former leaders, citing a perceived loss of interest in the project, dereliction of duty, and the alleged mass copying of internal files prior to their departure.
The AI's Counsel: Evidence of a Botched Strategy?
The plaintiffs, however, vehemently disagree with Krafton's account. As reported by Game Developer, Fortis Advisors has presented a pre-litigation memo containing a snippet of correspondence between Changhan Kim and CFO Richard Yoon. This exchange reportedly discussed the possibility of reducing the bonus during the studio's acquisition in 2021, a strategy that ultimately failed. The founders of Unknown Worlds believe that Krafton subsequently launched an internal "Project X" with the express purpose of either delaying the release or fabricating grounds for dismissal that would invalidate the bonus.
The crux of the plaintiffs' claim is that when Kim was informed that the bonus would still be payable even after dismissals, he turned to ChatGPT for guidance. The lawsuit asserts that the AI's response was a stark warning, indicating that avoiding the payout would be "difficult." The plaintiffs sought to have all records of these AI interactions presented as evidence, but Krafton claimed the correspondence had been deleted and was therefore unavailable. However, a recent development might shift the tide; OpenAI has been mandated to retain all chat histories, even deleted ones, which could be admissible in court.
Beyond AI: The Shifting Deadline and Unanswered Questions
Even without direct AI chat logs, the core issue of bonus payment remains contentious. One of the stipulated conditions for the bonus was the release of Subnautica 2 by the end of 2025. The game's postponement to 2026 effectively nullifies this condition, thus jeopardizing the bonus payout. Currently, the game is slated for a PC-only release, initially in early access. The implications of this shift for the former Unknown Worlds leadership's claim remain unclear.
In a statement to Kotaku, Krafton has vehemently denied the ChatGPT allegations, labeling them as false and a diversionary tactic to "obfuscate attempts to destroy evidence." The company further asserted that Charlie Cleveland and Max McGuire held no substantial role in the development of Subnautica 2, a sentiment echoed by former Unknown Worlds CEO Ted Gill, who described their involvement as minimal. Krafton maintains its unwavering stance that the dismissals were solely due to the game's development status.
The legal proceedings commenced on November 17, 2025, in the United States. The inaugural day featured testimonies from two former executives, with further hearings expected to unearth more details in this high-stakes legal drama.
Comments (0)
There are no comments for now