Krafton Forced to Rehire Fired CEO Following ChatGPT Advice

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In July of last year, two founders of Unknown Worlds (the developer of Subnautica) and a former CEO of the company sued Krafton, alleging they were dismissed to avoid paying a multimillion-dollar bonus outlined in their contracts. The plaintiffs claimed they were dismissed not necessarily for demanding the bonus, but because they warned Krafton that the money would be divided equally among all employees. On Tuesday, December 16, a Delaware court ruled in favor of the three, and the public decision revealed that the idea to dismiss them originated from ChatGPT. According to the investigation, Krafton CEO Changhan Kim calculated that the publisher would owe Unknown Worlds between $191 million and $242 million in bonuses after the release of Subnautica 2, as the game was on track to surpass all its launch goals. Kim reportedly felt remorseful about agreeing to such a large payout and consulted ChatGPT about how to avoid paying the bonus to the developers. The AI suggested that Ted Gill, Charlie Cleveland, and Max McGuire should be let go.

The court document indicates that Krafton’s legal team advised Kim against this strategy, but he disregarded their advice and followed the counsel of a free AI that studies have shown provides incorrect responses in at least 40% of cases. The Delaware judge’s decision underscores that Kim disregarded sound legal advice in favor of ChatGPT’s suggestion. As a result of the legal action, the court ruling forced Krafton to rehire its dismissed CEO. The court ruled that Ted Gill must immediately return as Krafton’s CEO, and the period for Subnautica 2 to meet all targets for Unknown Worlds to receive the contractual bonus is extended until September of this year. The decision does not address rehiring the developer’s two founders, Charlie Cleveland and Max McGuire. However, as CEO, Gill has the autonomy to rehire them if needed. Additionally, the decision ensures that Gill will have complete control over Subnautica 2’s launch without coordinating any strategy with Krafton.

Krafton Challenges CEO’s Reinstatement Decision Amid Uncertainty for Subnautica 2 Release Schedule

In a statement to Kotaku, representatives from Krafton stated that they disagree with the decision and will appeal it to a higher court. The ongoing legal proceedings introduce potential uncertainty regarding the game’s release schedule. Currently, the game is scheduled for 2026, but there is no defined release date. [Omitted: Crowdfunding and social media promotion.] This text does not necessarily reflect the opinion of Portal Uai.

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