ChatGPT controversy: Krafton CEO used AI to dodge $250M Subnautica 2 payout

Since the launch of ChatGPT, the chatbot has been used for various purposes ranging from seeking advice, emotional support, and completing tasks to cutting back on time for traditional search.

Now, AI chatbot has taken on another role as a collaborator, helping people to hatch disingenuous plans.

Once again OpenAI’s ChatGPT is under fire as a South Korean gaming publisher used the chatbot to remove the heads of one of its own game studios in an effort to avoid paying $250 million an earnout.

In a significant ruling from the Delaware Court of Chancery, Krafton, the South Korean publisher behind PUBG, has been ordered to reinstate the leadership of its subsidiary, Unknown Worlds Entertainment.

The legal battle started when Krafton acquired Unknown Worlds Entertainment, the developers of the Subnautica video game for $500 million in 2021.

In the time of acquisition, Krafton agreed upon the operational independence of the studio and if the studio were able to meet a certain target, the publisher would pay the $250 million earn out.

Instead of fulfilling his commitment, the CEO, Changhan Kim, decided to renege on his word and used ChatGPT to dodge the bonus payout.

ChatGPT initially responded that earnout would be difficult to avoid. Later, ChatGPT suggested that Kim form an internal task force, called Project X.

“The purpose of the task force was to either negotiate a ‘deal’ on the earnout or execute a ‘Take Over’ of Unknown Worlds,” the Guardian reported.

The instructions also included specific actions such as making a strategy based on fan trust, preparing “systematic material for legal defense” and securing publishing rights over Subnautica 2.

In the case of failure to negotiate the earnout with Unknown Worlds’ leadership, Kim removed them on the grounds of deceiving the company.

In response to the ruling, Krafton expressed his disagreement and decided to evaluate his options.