CEO Consults ChatGPT Over $250M Contract, Sidelines Lawyers, Loses in Court
A ruling from a court has mandated the reinstatement of a video game developer dismissed from their position by Krafton’s CEO, Changhan Kim. This unusual case emerged from an attempt by Kim to sidestep a potential $250 million contract payout tied to the anticipated success of the game, Subnautica 2. The situation underscores the controversial influence of artificial intelligence in corporate decision-making.
Background of the Case
Unknown Worlds Entertainment, the studio responsible for the 2018 underwater adventure game Subnautica, has been developing its sequel, Subnautica 2. In 2021, Krafton, a South Korean gaming company, acquired Unknown Worlds for $500 million, with an additional $250 million incentive based on the game’s sales performance.
Krafton’s Strategic Maneuver
As sales projections for Subnautica 2 suggested a strong market response, CEO Changhan Kim sought to avoid the substantial bonus payout. Consulting ChatGPT, he developed a strategy involving the potential dismissal of key personnel at Unknown Worlds. This unconventional consultation came amid fears of a contractual obligation that could financially burden the company.
Legal Risk and AI Guidance
According to court records, Maria Park, Krafton’s Head of Corporate Development, cautioned Kim about the risks associated with attempting to avoid the bonus payout. Despite her warnings, Kim persisted and relied on AI-generated advice.
Project X and Its Goals
Kim initiated “Project X” following consultations with ChatGPT. This internal task force aimed to negotiate a favorable deal while also considering a takeover of the development studio. Some key points of the strategy included:
- Prioritizing protection of fan trust to mitigate backlash.
- Securing rights concerning distribution and technical access.
- Preparing legal defenses and communication logs to safeguard the company.
- Creating retention strategies for key talent to prevent turnover.
Backlash and Court Ruling
Kim’s decision to disregard legal counsel in favor of AI advice backfired. Initial communications to Subnautica fans were met with confusion and concern regarding the game’s future. The firing of the original developers sparked further dissent, leading to ongoing litigation.
Ultimately, the court ruled in favor of the reinstatement for the fired developers, criticizing Kim’s reliance on AI-generated strategies. Krafton is currently reviewing its position following the legal ruling, emphasizing its commitment to player interests.
