WILMINGTON, Delaware - A Delaware Court of Chancery judge ordered Krafton Inc. to reinstate Unknown Worlds Entertainment CEO Ted Gill and restore operational control to the studio’s leadership.
The ruling found Krafton’s CEO Changhan Kim improperly relied on ChatGPT to devise a strategy to exit a $250 million earnout obligation triggered by 'Subnautica 2'’s projected success. The 2021 acquisition included binding terms: Unknown Worlds co-founders Charlie Cleveland and Max McGuire, and CEO Ted Gill, retained operational autonomy unless fired for cause.
Judge Lori Will determined Krafton’s claims of leadership negligence were unsubstantiated and ordered the earnout period extended.