Journalism begins where hype ends

,,

The greatest danger of Artificial Intelligence is that people conclude too early that they understand it.”

— Eliezer Yudkowsky

Gaming CEO Uses ChatGPT To Dodge a $250M Payout. Judge Says No

March 17, 2026 08:36 PM IST | Written by Neelam Sharma | Edited by Vaibhav Jha

A judge in Delaware, U.S. has ruled that the South Korean gaming company Krafton Inc. must reinstate the head of one of its subsidiaries, after it was found out that the executive was wrongfully removed during a takeover dispute influenced in part by ChatGPT.

The decision, issued Monday by Vice Chancellor Lori Will of the Delaware Court of Chancery, centers on a conflict between Krafton and Unknown Worlds Entertainment, the developer behind the popular game ‘Subnautica Series’.

According to the ruling, Krafton Inc. had acquired Unknown Worlds Entertainment—the creators of the famous game Subnautica for $500 million upfront in 2021.

According to the plaintiff, as per the acquisition deal, Krafton Inc. had assured Unknown Worlds Entertainment co-founders Charlie Cleveland and Max McGuire ‌and CEO ⁠Ted Gill that they could run operations independent and they would not be fired except for cause. Additionally, there was a contractual promise to pay an additional $250 million “earnout” if Subnautica 2 hit revenue targets, reported Reuters.

The game went on to become popular, however the lawsuit filed against Krafton alleged that its CEO Changhan Kim used ChatGPT to change the deal.

According to court documents, Kim was advised against violating the terms by his own legal team, however, he chose not to listen and asked ChatGPT to prepare a complete takeover plan.

The court documents have revealed that at ChatGPT’s suggestion, Kim formed an internal task force dubbed “Project X”, whose task was to either negotiate a deal on the promised $250 million or execute a takeover.

The studio leaders disagreed with the Project X plan and they took the fight to court in Delaware.

Judge Will ordered that CEO Ted Gill be reinstated and that operational control be returned to the studio’s leadership. She also extended the timeline for meeting the earnout conditions.

Krafton said it disagrees with the ruling and is reviewing its legal options. Despite the dispute, the company emphasized it remains focused on delivering the upcoming Subnautica sequel to fans.

Authors

Neelam Sharma

Neelam Sharma is a passionate storyteller, and journalist with over a decade of experience across leading Indian media houses.
Known for her calm presence on screen and powerful storytelling off it, Neelam brings a rare blend of credibility, creativity, and empathy to journalism. Her strength lies in ground reporting and research-driven narratives that connect with the heart of the audience. Whether covering social issues, human-interest features, or breaking news, she combines factual depth with a human touch—making every story not just informative.

Vaibhav Jha

Vaibhav Jha is an Editor and Co-founder of AI FrontPage. In his decade long career in journalism, Vaibhav has reported for publications including The Indian Express, Hindustan Times, and The New York Times, covering the intersection of technology, policy, and society. Outside work, he’s usually trying to persuade people to watch Anurag Kashyap films.