Krafton CEO allegedly asked ChatGPT to help him find a way out of paying Subnautica 2 devs their bonuses because he wanted to avoid the 'professional embarrassment' of being seen as a 'pushover'

Former Unknown Worlds executives allege in a pre-trial brief that Krafton CEO Changham Kim sought ways to avoid paying acquisition earnout payments—reportedly even consulting ChatGPT, which advised cancelling the earnout would be difficult—because he feared the "professional embarrassment" of having overpaid; the filing claims Krafton then pursued tactics (dubbed "Project X") to delay Subnautica 2’s early access window so earnouts would not vest. Krafton denies the allegations, says the founders were removed for failing to manage the game and resisted returning to their roles, and accuses them of destroying evidence (noting some ChatGPT interactions were not produced). The dispute introduces legal and reputational risk for Krafton, creates potential sizable contingent liabilities tied to the earnout, and has pushed Subnautica 2 into early access in 2026, leaving revenue timing and costs uncertain until the trial resolves the claims.

Analysis

A pre-trial brief filed by former Unknown Worlds executives alleges Krafton CEO Changham Kim sought ways to avoid paying acquisition earnout obligations to Subnautica 2 founders Charlie Cleveland, Ted Gill and Max McGuire, reportedly consulting ChatGPT which the filing says advised cancellation would be difficult; the brief also notes Krafton did not produce the ChatGPT conversations and the company denies the allegation. The dispute follows abrupt departures in July, counterclaims that the founders were fired for poor stewardship and alleged deception, and a shift in Krafton’s public rationale from product readiness to misconduct allegations.

The plaintiffs say Krafton contemplated delaying Subnautica 2’s early access window via an initiative dubbed "Project X" to prevent earnout vesting, while Krafton counters it offered extensions and removed leaders for lack of engagement; Subnautica 2's early access is now expected in 2026, which defers revenue and puts achievement of sales targets in doubt. The filing frames the issue as both a contingent liability and a governance problem, and the reported destruction or non-production of AI chat logs heightens evidence and reputational risk.

Market signals reflect moderately negative sentiment and limited immediate market impact (sentiment score -0.4, market impact 0.3), indicating legal and timing uncertainty is likely to drive volatility rather than a definitive valuation reset until litigation outcomes or clear settlement terms emerge.

Key Decisions for Investors

• Monitor court filings, discovery outcomes and any disclosures on the ChatGPT logs closely and update contingent liability assumptions if earnout exposure becomes quantifiable
• Reassess direct or indirect exposure to Krafton and partners given elevated governance and reputational risk and the deferral of Subnautica 2 revenue to early access 2026, consider trimming positions if exposure is material to portfolio risk
• Maintain or establish downside hedges until legal clarity or a settlement that quantifies financial impact is reached, while avoiding initiating new long positions based on uncertain launch timing
• Use any clear, favorable legal rulings or an announced settlement that eliminates earnout liability as a catalyst to add exposure, but require transparent proof of preserved evidence and an updated release schedule before increasing allocation