Embattled CEO caught asking ChatGPT for corporate takeover plan — against lawyer’s advice
The future is here, and it seemingly includes CEOs using chatbots to create plans to avoid having to pay out hundreds of millions of dollars.
That was a judge’s conclusion after a smaller American studio sued a giant, publicly traded South Korean conglomerate that allegedly prevented it from putting out its product.
‘Lock down Steam/console publishing rights and access rights.’
Krafton CEO Kim Chang-han handles nearly $2 billion of revenue across a multitude of companies, which includes PubG Studios, a massively popular online shooter game.
Since 2021, Krafton has controlled Unknown Worlds, an American studio responsible for the game Subnautica, which sold over five million copies in two years.
With so much success from the first game, Krafton agreed to a $250 million earnout if Subnautica 2 was able to meet specific sales targets. Krafton’s CEO was not keen on letting that happen and subsequently plotted “Project X,” a plan to prevent the payout.
After internal reports projected Subnautica 2 was likely to hit its targets, things got hairy. According to court documents, when Krafton’s Head of Corporate Development Maria Park warned CEO Kim that removing Unknown Worlds’ leadership via “dismissal with cause” opened them up to “lawsuit and reputational risk,” he turned to ChatGPT for help.
The chatbot told Kim that the earnout would be “difficult to cancel” but suggested forming an internal task force to either negotiate a “deal” or execute a “takeover” of the company; Kim obliged and allegedly continued to follow ChatGPT’s suggestions.
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Not only did Kim allegedly share his strategies from ChatGPT with colleagues, but the strategies included a “pressure and leverage package” against Unknown Worlds.
Among its recommendations, ChatGPT suggested Krafton undermine any David versus Goliath narratives, while urging Kim to prepare for scenarios like buyouts and replacements.
Most jarringly, it also suggested locking down Unknown Worlds’ ability to post its new game for sale on Steam, the largest gaming distributor for PC games.
“Lock down Steam/console publishing rights and access rights over code/build pipeline through both legal and technical aspects,” ChatGPT said, the lawsuit revealed. “For the earn-out freeze, keep room for negotiations through provision stating ‘immediate removal if specific development results are achieved.'”
Kim did as the chatbot recommended and locked down the publishing, and Subnautica 2 could not be released. When Unknown Worlds CEO Ted Gill asked for control to be returned, Kim allegedly ignored him and told a Krafton studio rep to relay to Gill that he had “no intention of transferring stuff back to you guys (like the Steam app).”
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Ina FASSBENDER/AFP/Getty Images
While Gamesradar reported that Krafton leadership admitted to using ChatGPT for “faster answers,” the company told Kotaku that some characterizations made about them have been false.
In response to claims from Unknown Worlds that Krafton said its chat logs no longer exist, the company said the claim was “simply a distraction from their own efforts to destroy evidence.”
In the end, a Delaware judge ruled that Kim relied on ChatGPT to craft a strategy aimed at avoiding the $250 million payment.
“Fearing he had agreed to a ‘pushover’ contract, KRAFTON’s CEO consulted an artificial intelligence chatbot to contrive a corporate ‘takeover’ strategy,” Vice Chancellor Lori Will said in her ruling, per Economic Times.
The court maintained that Krafton was expected to exercise independent judgment and not outsource its decisions to AI systems.
PC Gamer has since reported that Unknown Worlds will be given an extension to reach its earnout goals to mid-September, with the possibility of extending to March 2027.
The game is set for early release in May 2026.
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