Subnautica 2 Publisher Asked ChatGPT For Help Dumping Founders

Unknown Worlds’ cofounders say Krafton abruptly fired them to avoid a $250 million earnout tied to Subnautica 2 sales and, in new pre-trial filings, claim internal documents reveal a “Project X” plan to cancel the earnout or execute a takeover after failed renegotiation—alleging Krafton’s CEO even consulted ChatGPT for ways to avoid payment. Krafton disputes those claims, accuses the founders of destroying or mishandling evidence, says it removed leadership to protect Subnautica 2’s development and offered an earnout extension if they returned, and insists the changes were in the franchise’s best interest. The dispute highlights material financial and reputational risk for Krafton, has reportedly damaged studio morale and could complicate Subnautica 2’s development and launch (currently slated for 2026) depending on the trial’s outcome.

Analysis

Unknown Worlds’ cofounders allege Krafton abruptly terminated them earlier this year to avoid a $250 million earnout tied to Subnautica 2 sales, and their recent pre-trial filing cites internal communications describing a “Project X” plan to either renegotiate or execute a takeover. The filing highlights an exchange where Krafton executives discussed canceling the earnout and alleges CEO Kim Chang-han consulted ChatGPT for ways to avoid payment; the plaintiffs also claim Krafton later refused to produce related AI conversations.

Krafton has publicly rebutted these claims, accusing the founders of evidence destruction and of having been disengaged from Subnautica 2’s development, while saying it replaced management to protect the franchise and offered remaining staff launch bonuses and an earnout extension if the founders returned. Both sides frame operational harm — plaintiffs point to internal reports of damaged morale and lost transparency, Krafton points to a duty to protect the game and long-term reputation using Kerbal Space Program 2 as a cautionary example.

The dispute creates a clear contingent financial and reputational risk for Krafton: a judicial finding for the plaintiffs could crystallize the $250 million liability and amplify investor concern about governance and M&A diligence, while prolonged litigation and morale issues could disrupt Subnautica 2’s development timeline (the game is slated for 2026). Sentiment signals are moderately negative (score -0.4) with a modest market-impact score (0.35), indicating reputational and operational uncertainty that investors should monitor closely.

Key Decisions for Investors

• Monitor court docket and discovery disclosures for definitive evidence of ‘Project X,’ ChatGPT logs, or contract interpretation rulings that would materially increase Krafton’s contingent liability
• Stress-test Krafton’s financials for a potential $250 million payout and assess whether the company has reserves or disclosure on potential earnout obligations before adjusting position sizes
• Track Subnautica 2 development milestones, staff retention and any announced delays or management changes as leading indicators of launch risk and cash-flow timing
• Avoid initiating material new long exposure to Krafton until the litigation trajectory becomes clearer, or use hedges to limit downside from surprise liability or reputational damage