Krafton has been ordered to reinstate the recently dismissed CEO of Unknown Worlds, the studio behind Subnautica. The decision came after the publisher was exposed for using ChatGPT to look for ways to avoid paying previously promised performance bonuses tied to the success of the game.
Krafton acquired Unknown Worlds in 2021. The deal included up to $250 million in bonus payments if the upcoming game Subnautica 2 reached certain financial targets.
Krafton CEO Changhan Kim reportedly turned to ChatGPT to develop a strategy to cut costs and avoid paying those bonuses. As part of a secret internal initiative called “Project X,” he searched for ways to terminate the agreement or gain full control over the studio.
Among the tactics discussed — and partially implemented — were intentionally delaying the release of Subnautica 2 and limiting the number of sales platforms so the game would not reach the required performance targets within the agreed timeframe.
Krafton later fired three studio founders, accusing them of “neglecting” the game’s development. The developers — Charlie Cleveland, Max McGuire, and Ted Gill — filed a lawsuit, claiming the dismissals were unlawful.
On March 16, 2026, a Delaware state judge ruled that Krafton violated the contract by removing key executives without sufficient cause. The court ordered the company to reinstate Ted Gill as CEO, and granted him the authority to bring back the other co-founders.
Because Krafton’s actions disrupted the studio’s operations, the judge also extended the deadline for earning the $250 million bonus until September 15, 2026.
Krafton continues to deny wrongdoing, stating that it disagrees with the ruling and is considering further legal action.
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