Key Takeaways
- Krafton's CEO consulted ChatGPT on how to avoid paying a $250 million bonus to Unknown Worlds founders
- A Delaware judge ruled Krafton wrongfully fired the studio heads and reinstated the earnout agreement
- Subnautica 2 launches in early access this week as Steam's most-wishlisted game
Here's a corporate drama you couldn't make up: A gaming CEO consults ChatGPT about how to avoid paying a $250 million bonus. The AI eventually tells him it's a bad idea. He does it anyway. A judge reverses his scheme. And now the game at the center of it all is about to become one of the biggest launches on Steam.
Subnautica 2 hits early access this week. It's currently Steam's most-wishlisted game with over 5 million wishlists. The original Subnautica sold 15 million copies. By all measures, the sequel is primed to trigger the revenue milestone that would pay out that $250 million earnout bonus. The bonus Krafton CEO Changhan Kim allegedly tried very hard to avoid.
The Firing and the Fallout
In July 2025, Unknown Worlds CEO Ted Gill and co-founders Charlie Cleveland and Max McGuire were suddenly told to pack up their desks. Krafton, the South Korean company that acquired Unknown Worlds in 2021, claimed the trio was planning to release Subnautica 2 prematurely. The game was allegedly so flawed it could cause "irreversible harm to the entire IP franchise."
This explanation raised eyebrows immediately. PC Gamer was in the middle of planning a cover story for Subnautica 2 in June 2025. The studio had been ready for a major feature. Then, seemingly overnight, the game went from cover-ready to supposedly unreleasable.
The fired executives sued. That's when the $250 million bonus became public. According to Bloomberg journalist Jason Schreier, some of that money would have been shared with staff across the studio. The founders alleged Krafton fabricated concerns about the game to avoid signing a very large check.
Krafton's Shifting Story
Krafton later changed its reasoning. The new claim: Gill, Cleveland, and McGuire had "abandoned" their jobs and stolen confidential company data. The trial revealed problems with both arguments.
Cleveland and McGuire were performing limited roles at Unknown Worlds. But testimony showed Krafton already knew and accepted this arrangement. As for the data theft claim, yes, the trio did back up confidential data. But they did it after they were fired, in order to "protect the studio's work product amid Krafton's takeover attempt," according to Delaware Vice Chancellor Lori Will.
Will pointed out an obvious problem: you can't fire someone "for cause" when the cause happened after the firing.
The ChatGPT Transcripts
The trial surfaced internal logs showing CEO Changhan Kim's conversations with ChatGPT. The AI chatbot became an unlikely legal exhibit.
“Now, ChatGPT is starting to answer that it is difficult to cancel the earn-out. If so, this is a contract under which we can only be dragged around.”
— Changhan Kim, CEO of Krafton, from internal logs revealed in court
Kim also offered a curious explanation for his motivations in other communications: "It's not about the money. It just feels awful to be taken advantage of." The irony of that statement, given the circumstances, was not lost on observers.
The Judge's Ruling
Vice Chancellor Lori Will did not mince words in her decision.
“Krafton wrongfully usurped control... through a campaign to seize control based on a strategy contrived with an AI chatbot.”
— Vice Chancellor Lori Will, Delaware Chancery Court
The ruling reinstated the earnout agreement. If Subnautica 2 hits its revenue targets, Krafton will have to pay up. Given the game's position as Steam's most-wishlisted title and the original's 15 million sales, that outcome looks likely.
What Happens Now
Subnautica 2 enters early access this week. The survival adventure game takes players back to an alien ocean world with new biomes, creatures, and cooperative multiplayer. Unknown Worlds appears to have the game in solid shape despite the corporate chaos surrounding its development.
Krafton posted $1.85 billion in annual revenue in 2024. The company can afford the payout. The question now is whether the relationship between Krafton and Unknown Worlds can survive the litigation, or whether this marks the beginning of a messier separation.
Logicity's Take
Frequently Asked Questions
What is the Krafton Unknown Worlds lawsuit about?
Krafton allegedly fired Unknown Worlds founders to avoid paying a $250 million earnout bonus tied to Subnautica 2's success. The founders sued, and a Delaware judge ruled in their favor.
How did ChatGPT factor into the Krafton lawsuit?
Court documents revealed Krafton CEO Changhan Kim consulted ChatGPT about how to cancel the earnout agreement. The AI's responses were used as evidence of premeditated scheming.
When does Subnautica 2 launch?
Subnautica 2 enters early access on Steam this week. It's currently the most-wishlisted game on the platform.
Will the Unknown Worlds founders get the $250 million bonus?
If Subnautica 2 hits its revenue targets, Krafton must pay the earnout. Given the game's 5 million wishlists and the original's 15 million sales, that outcome appears likely.
Who is Ted Gill?
Ted Gill was the CEO of Unknown Worlds Entertainment. He was fired by Krafton in July 2025 and later won a lawsuit against the company over his termination and the earnout bonus.
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Source: PCGamer latest
Huma Shazia
Senior AI & Tech Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
