Krafton CEO allegedly asked AI to "brainstorm ways to avoid paying" earnout bonus to Subnautica 2 devs

A pre-trial brief filed by the ousted leadership of Unknown Worlds alleges Krafton CEO Changham Kim sought advice from ChatGPT and explored ways to avoid paying an acquisition earnout tied to Subnautica 2, and that the publisher delayed the game's early access into 2026 and staged a takeover of the studio to sidestep bonus payouts; Slack excerpts in the filing reportedly show discussions of a takeover and a footnote says the ChatGPT conversations no longer exist. Krafton has pushed back, saying the claims distract from alleged evidence destruction by former leaders, that it offered to extend the earnout period, and that leadership changes were made to protect the game's development—while the company defends its actions in ongoing litigation. The dispute creates legal and reputational risk for Krafton, raises questions about its recent 'AI-first' strategy and governance, and could have financial implications depending on the court’s handling of the earnout and related contract remedies.

Analysis

A pre-trial brief filed by the ousted leadership of Unknown Worlds alleges Krafton CEO Changham Kim consulted ChatGPT and pursued a takeover to avoid paying an acquisition earnout tied to Subnautica 2, and that the publisher delayed the game's early access release into 2026 while removing key leaders including Charlie Cleveland. The filing cites Slack messages suggesting a takeover (“It might be easier to just take over...”) and a footnote states the ChatGPT conversations “no longer exist,” raising evidentiary questions.

Krafton has publicly disputed those claims, accusing the plaintiffs of destroying evidence and stating it offered to extend the earnout period; the company also says the delay was under discussion prior to leadership changes and that actions were taken to protect game quality. The dispute is in active litigation and Krafton is defending the leadership changes as necessary for development progress.

Financial and governance implications are material: a court finding in favor of the plaintiffs could create a quantifiable earnout liability or require reinstatement of leaders, while the delay to 2026 defers potential revenue and monetization of Subnautica 2. The company’s October pivot to an “AI-first” strategy combined with the allegation it used generative AI to skirt contractual obligations heightens reputational and governance risk; external sentiment is moderately negative (sentiment_score -0.45) with a market_impact_score of 0.35, indicating limited but nontrivial market sensitivity.

Key Decisions for Investors

• Monitor court filings and the trial schedule closely for rulings on earnout enforcement or evidence spoliation, as outcomes will determine direct financial liability and the timing of potential reserves
• If materially exposed to Krafton, consider hedging or avoiding new allocations until legal clarity is achieved and management credibility around AI governance is reassessed
• Adjust short-term revenue and cash-flow forecasts to reflect the announced delay of Subnautica 2 into 2026 and model scenarios where an earnout is paid versus litigated liabilities are assessed
• Watch for additional disclosures about the missing ChatGPT records and any regulatory or corporate-governance responses to the AI-first strategy, and be prepared to trim valuation multiples if reputational damage or governance failures widen