Krafton Used ChatGPT to Dodge $250M Subnautica 2 Bonus
▼ Summary
– Krafton, publisher of Subnautica 2, is being sued by three ex-leads of the game’s developer Unknown Worlds, who are also countersuing the trio.
– The lawsuit stems from Krafton delaying Subnautica 2, which prevented Unknown Worlds from receiving a $250 million bonus.
– Legal filings claim Krafton terminated the founders and seized control of Unknown Worlds to avoid paying the $250 million earnout.
– Krafton allegedly consulted ChatGPT for advice on how to avoid the payout, but the AI reportedly stated it would be difficult to cancel the earnout.
– The co-founders assert that Krafton did not provide evidence of the ChatGPT conversations and confirmed the records no longer exist.
The video game industry is witnessing a remarkable legal dispute where Krafton, the publisher behind Subnautica 2, reportedly consulted ChatGPT for advice on avoiding a $250 million contractual bonus payment. This situation stems from a delayed game release, which triggered a massive earnout clause owed to developer Unknown Worlds. Legal documents reveal that Krafton allegedly sought ways to cancel the bonus, leading to the termination of three founding developers and a takeover of the studio.
According to a pre-trial briefing reviewed by Kotaku, former Unknown Worlds founders Charles Cleveland, Adam “Max” McGuire, and Edward “Ted” Gill accuse Krafton of orchestrating their removal to sidestep financial obligations. The filing describes internal communications referencing a secret “Project X,” outlining strategies either to renegotiate the payout or execute a studio takeover. When founders resisted proposed changes to the earnout agreement, Krafton apparently deemed a takeover the simpler path forward.
Correspondence between Krafton CEO Kim Chang-han and global operations head Richard Yoon reportedly discusses implementing this takeover plan. The legal documents further allege that Krafton believed it had overpaid during its acquisition of Unknown Worlds, creating motivation to avoid the additional $250 million payment. In what appears to be an unconventional approach to corporate strategy, Kim allegedly turned to artificial intelligence for solutions regarding the bonus avoidance.
The ChatGPT consultation reportedly yielded the assessment that canceling the earnout would prove “difficult,” according to the court filing. The former developers claim Krafton declined to provide records of these AI conversations and confirmed the exchanges no longer exist when pressed for evidence. This absence of documentation raises questions about the role AI played in corporate decision-making processes.
Industry observers might question the wisdom of relying on generative AI for high-stakes legal and financial strategy. While AI tools offer various applications in game development, their use in contractual disputes involving hundreds of millions of dollars represents relatively uncharted territory. The situation becomes particularly noteworthy given Krafton’s recent announcement about prioritizing generative AI in its development pipeline, alongside implementing voluntary redundancy programs.
This case highlights emerging questions about corporate responsibility when integrating AI into business operations. As companies explore artificial intelligence for various functions, the Krafton situation demonstrates how these technologies might influence significant financial decisions and legal strategies. The outcome of this dispute could establish important precedents regarding AI’s role in corporate governance and contractual relationships within the gaming sector.
(Source: Rock Paper Shotgun)