Krafton CEO Used ChatGPT to Avoid Subnautica 2 Bonus, Lawsuit Claims
A startling new legal filing in the ongoing dispute between publisher Krafton and the founders of Unknown Worlds, the studio behind the hit game *Subnautica*, alleges that Krafton's CEO used the AI tool ChatGPT to explore ways to avoid paying a massive performance-based bonus tied to the upcoming *Subnautica* sequel. The filing also claims the CEO discussed a "takeover" of the studio in private Slack messages as the relationship between the two companies deteriorated.
The explosive allegations come from a pre-trial brief filed by Unknown Worlds co-founders Charlie Cleveland and Max McGuire. The document paints a picture of a corporate clash centered on an "earnout" agreement potentially worth hundreds of millions of dollars, which the founders claim Krafton actively sought to undermine.
The ChatGPT and Takeover Allegations
At the heart of the new filing are claims surrounding Krafton CEO Chang-han Kim's alleged actions. According to the document, Kim was concerned that paying the massive earnout, which was contractually promised to the Unknown Worlds founders and employees based on the success of their next game, would be personally "embarrassing" and could potentially cost him his job for having "overpaid" for the studio.
The filing makes two central and highly unusual claims:
- Use of ChatGPT: It is alleged that the CEO turned to the popular AI chatbot, ChatGPT, "to help him brainstorm ways to avoid paying the earnout." This detail introduces a uniquely modern twist to the corporate dispute, raising questions about the use of AI in formulating business and legal strategies.
- "Takeover" Discussions: The brief also cites internal Slack messages in which the CEO allegedly discussed a "takeover" of Unknown Worlds. This was purportedly part of a strategy to gain more direct control over the studio, potentially as a means to invalidate the earnout agreement made with the original leadership.
These claims suggest a deliberate effort from the highest levels of Krafton to find a loophole or justification for nullifying a key part of the 2021 acquisition deal, which the Unknown Worlds founders argue was the primary reason they agreed to the sale.
Understanding the Earnout Dispute
To understand the core of the conflict, it's essential to understand the "earnout" provision. When Krafton acquired Unknown Worlds in 2021, the deal included a significant financial incentive for the studio's founders and key employees.
An earnout is a common feature in acquisitions where the final sale price is tied to the future performance of the acquired company. In this case, the Unknown Worlds team was promised a substantial share of the value generated by their next title, the highly anticipated sequel to *Subnautica*. Given the immense success of the first game, this earnout was projected to be worth hundreds of millions of dollars.
The lawsuit alleges that after realizing the potential size of the payout, Krafton initiated a "scheme" to fire Cleveland and McGuire "for cause." By terminating their employment, the founders argue, Krafton intended to void the earnout agreement and avoid the massive payment, effectively depriving the creative team of their contractually promised reward for the game's future success.
The Path to the Courtroom
The relationship between the publisher and the studio founders reportedly soured as development on the next *Subnautica* progressed. The legal filings suggest that disagreements over creative direction and management styles were amplified by the looming financial implications of the earnout.
The lawsuit was initiated after the firings of Cleveland and McGuire, who contend their termination was pretextual and designed solely to trigger a clause that would cancel the bonus payment. Krafton has countersued, creating a complex legal battle that is now set to unfold in court. The latest brief, with its bombshell claims about ChatGPT and a potential takeover, dramatically raises the stakes and public interest in the case.
The outcome of this trial could have significant repercussions not only for the individuals involved but for the future of the *Subnautica* franchise. It also serves as a cautionary tale within the games industry, highlighting the potential for conflict when the creative culture of an independent studio collides with the corporate objectives of a massive global publisher. As the case proceeds, the industry will be watching closely to see how these stunning allegations are addressed.
Frequently Asked Questions (FAQ)
What is the lawsuit between Krafton and Unknown Worlds about?
The lawsuit centers on the claim by Unknown Worlds' co-founders that publisher Krafton wrongfully terminated their employment to avoid paying a massive, contractually-obligated bonus (an "earnout") tied to the success of the next *Subnautica* game.
Who are the main parties involved?
The key players are Krafton, Inc., the South Korean publisher known for *PUBG: Battlegrounds*, and Charlie Cleveland and Max McGuire, the co-founders of Unknown Worlds, the development studio that created the *Subnautica* series.
What is an "earnout" bonus?
An earnout is a financial incentive used in acquisitions. It makes part of the purchase price conditional on the acquired company achieving certain performance goals in the future. In this case, the bonus was tied to the financial success of the upcoming *Subnautica* sequel.
Is the next Subnautica game still in development?
Yes, despite the legal dispute involving the studio's founders, the next installment in the *Subnautica* franchise is still in development under Krafton and Unknown Worlds. It is one of the most anticipated titles in the survival game genre.