{"meta":{"exportedAt":"2026-10-10T08:55:59.046Z","formatVersion":2,"selection":{"q":"website","system":"","harm":"","context":"","country":"","role":"","relation":"contextual","evidence":"","year":"2025","response":"","severity":"","verification":"","view":"incidents","sort":"added"},"totalIncidents":1,"coverage":{"cases":1,"countries":0,"languages":1,"unknownLocation":1,"locationPending":0,"unknownLanguage":0,"unknownDate":0,"lawsuits":0,"regulatory":0,"minors":0,"coreRelations":0,"contextualRelations":1,"mixedRelations":0,"unknownRelations":0,"relationPending":0,"relationUnknown":0},"countingNote":"Distinct public cases in this selection. People counts apply within individual cases only; cross-case person overlap has not been resolved. No population incidence estimate.","affectedCountNote":"Interpret person counts with affectedCountStatus and the reported effects. Unquantified zeros are placeholders, not a measured zero.","source":"AI incidents","publisher":"NOPE","url":"https://nope.net/incidents","license":"CC BY 4.0"},"incidents":[{"id":"2025-krafton-unknown-worlds-executives-terminated-after-chatgpt-takeover-strategy","caseFacts":{"claims":[{"id":"c1","status":"documented","evidence":[{"locator":"Krafton breached the EPA by terminating the Key Employees without valid Cause and by improperly seizing operational control of Unknown Worlds.","relation":"supports","source_id":"s1"},{"locator":"Date Decided: March 16, 2026","relation":"supports","source_id":"s1"},{"locator":"Krafton agreed the studio would remain independent and that its leadership would retain operational control and could only be fired for cause, according to the ruling","relation":"supports","source_id":"s2"}],"assertion":"On 16 March 2026 the Delaware Court of Chancery entered judgment that Krafton breached the acquisition agreement by terminating the three Key Employees without valid Cause and by improperly seizing operational control of the studio.","causal_attribution":"Phase One judgment on the contract claims. The court reserves damages for a second phase and does not decide whether the earnout was wrongfully impaired."},{"id":"c2","status":"documented","evidence":[{"locator":"a “dismissal with cause” would not eliminate the earnout obligation","relation":"supports","source_id":"s1"},{"locator":"turned to ChatGPT for help.","relation":"supports","source_id":"s1"},{"locator":"Now, chatgpt starts to answer that it is difficult to cancel the earn-out.","relation":"supports","source_id":"s1"},{"locator":"When the AI chatbot responded that the earnout would be “difficult to cancel,”","relation":"supports","source_id":"s1"}],"assertion":"The court found that after the Head of Corporate Development at Krafton warned the CEO that a dismissal with cause would not eliminate the earnout obligation, the CEO turned to ChatGPT, and that the CEO told the Head of Corporate Development in a Slack message that ChatGPT answered the earnout would be difficult to cancel.","causal_attribution":"Findings of fact drawn from Slack messages and trial testimony. The chat itself was deleted."},{"id":"c3","status":"documented","evidence":[{"locator":"The AI chatbot prepared a “Response Strategy to a ‘No-Deal’ Scenario,”","relation":"supports","source_id":"s1"},{"locator":"Lock down Steam/console publishing rights and access rights over code/build pipeline","relation":"supports","source_id":"s1"},{"locator":"Preemptive Framing - Repeat that protecting quality and fan trust is the highest priority","relation":"supports","source_id":"s1"},{"locator":"Systematic materials for legal defense - Prepare contract interpretation memorandums, log all communications","relation":"supports","source_id":"s1"},{"locator":"Team retention - Operation of retention packages for key personnel and rapid backfill pipelines","relation":"supports","source_id":"s1"},{"locator":"Over the next month, Krafton followed most of ChatGPT’s recommendations.","relation":"supports","source_id":"s1"},{"locator":"Over the next month, Krafton followed most of ChatGPT’s recommendations,","relation":"supports","source_id":"s2"}],"assertion":"The court found that ChatGPT prepared a \"Response Strategy to a No-Deal Scenario\" recommending, among other steps, preemptive public framing, locking down publishing rights and access to the build pipeline, legal defense materials and team retention, and that Krafton followed most of these recommendations over the next month.","causal_attribution":"The opinion lists the strategy items and the steps Krafton took. The listed strategy does not include dismissing the executives. The dismissal decision is Krafton's."},{"id":"c4","status":"documented","evidence":[{"locator":"Krafton locked down Steam publishing rights to ensure Unknown Worlds could not publish Subnautica 2.","relation":"supports","source_id":"s1"},{"locator":"This severed Unknown Worlds’ practical ability to launch Subnautica 2.","relation":"supports","source_id":"s1"},{"locator":"On June 12, Krafton posted a message on the Unknown Worlds and Subnautica websites.","relation":"supports","source_id":"s1"},{"locator":"the Unknown Worlds team were shocked, since they had “nothing to do with” the message","relation":"supports","source_id":"s1"},{"locator":"On July 1, 2025, Krafton sent termination letters to","relation":"supports","source_id":"s1"},{"locator":"The letters identified a single ground for dismissal","relation":"supports","source_id":"s1"}],"assertion":"The court found that Krafton locked Unknown Worlds out of its Steam publishing rights, which the court found severed the studio's practical ability to launch its game, posted a message on the studio websites without the studio's involvement, and on 1 July 2025 sent termination letters citing a single ground.","causal_attribution":"Court findings of fact. The opinion links the lockdown to ChatGPT's recommendation and does not state that ChatGPT recommended the July terminations."},{"id":"c5","status":"documented","evidence":[{"locator":"Krafton’s newly manufactured justifications for the terminations are pretextual.","relation":"supports","source_id":"s1"},{"locator":"had secretly entered semi-retirement and that all three leaders had executed massive downloads of company data","relation":"supports","source_id":"s1"}],"assertion":"The court found Krafton's later justifications for the terminations (semi-retirement of two founders and data downloads) were pretextual.","causal_attribution":"Judicial finding after an expedited trial. Krafton's arguments are its litigation positions."},{"id":"c6","status":"documented","evidence":[{"locator":"is hereby reinstated as CEO of Unknown Worlds","relation":"supports","source_id":"s1"},{"locator":"authority over the early access launch of Subnautica 2","relation":"supports","source_id":"s1"},{"locator":"the base earnout Testing Period is equitably extended by 258 days","relation":"supports","source_id":"s1"}],"assertion":"The court reinstated the CEO of Unknown Worlds, enjoined Krafton from impeding the studio CEO's authority over the game's early access launch, and extended the base earnout Testing Period by 258 days.","causal_attribution":"Specific performance remedy. The court declined to return the two founders to their earlier roles."},{"id":"c7","status":"documented","evidence":[{"locator":"had deleted specific, relevant ChatGPT logs.","relation":"supports","source_id":"s1"},{"locator":"This particular chat was deleted.","relation":"supports","source_id":"s1"}],"assertion":"The CEO admitted at trial to deleting relevant ChatGPT logs, including the particular chat in which the earnout question was put to the chatbot.","causal_attribution":"A limit on the record. It bears on what the chatbot said, not on the court's findings about the terminations."},{"id":"c8","status":"documented","evidence":[{"locator":"formed an internal task force, dubbed “Project X.”","relation":"supports","source_id":"s1"},{"locator":"The task force’s mandate was to either negotiate a “deal” on the earnout or execute a “Take Over” of Unknown Worlds.","relation":"supports","source_id":"s1"},{"locator":"formed an internal taskforce, dubbed Project X.","relation":"supports","source_id":"s2"},{"locator":"The task force’s mandate was to either negotiate a ‘deal’ on the earnout or execute a ‘takeover’ of Unknown Worlds,","relation":"supports","source_id":"s3"}],"assertion":"The court found that, at ChatGPT's suggestion, the Krafton CEO formed an internal task force, Project X, whose mandate was either to negotiate a deal on the earnout or to execute a takeover of Unknown Worlds.","causal_attribution":"Finding of fact in the opinion, relayed by the Guardian and IGN. The task force's mandate is Krafton's; the opinion attributes only the suggestion to form it to ChatGPT."},{"id":"c9","status":"documented","evidence":[{"locator":"began to explore options, including firing the Key Employees.","relation":"supports","source_id":"s1"}],"assertion":"The court found that the Krafton CEO had begun exploring options, including firing the Key Employees, before the 2 June 2025 warning and the ChatGPT consultation that followed it.","causal_attribution":"Contrary evidence on causation: the idea of dismissal preceded the chatbot consultation."},{"id":"c10","status":"documented","evidence":[{"locator":"It also suggested a “key summary of responses” Krafton could deliver to the Key Employees:","relation":"supports","source_id":"s1"},{"locator":"Krafton’s seizure of Steam and other systems forced","relation":"supports","source_id":"s1"},{"locator":"to the negotiating table, and they began to discuss a solution.","relation":"supports","source_id":"s1"},{"locator":"It might actually be easier to just do a takeover.","relation":"supports","source_id":"s1"},{"locator":"responded: “Set a date.”","relation":"supports","source_id":"s1"}],"assertion":"The court found that ChatGPT's strategy also suggested a key summary of responses Krafton could deliver to the Key Employees, that Krafton's seizure of Steam and other systems forced the studio's CEO to the negotiating table, and that when negotiations stalled Krafton's Head of Strategy wrote on 27 June 2025 that it might be easier to just do a takeover, to which the Krafton CEO replied to set a date.","causal_attribution":"Findings of fact from Slack messages and trial testimony. They connect the ChatGPT-recommended lockdown to the negotiations and the takeover decision; the takeover decision itself is the Krafton executives'."},{"id":"c11","status":"reported","evidence":[{"locator":"have reached a mutual settlement and agreed to dismiss all pending legal proceedings,","relation":"supports","source_id":"s3"},{"locator":"Krafton said in a regulatory filing Wednesday that the company and the lead developers behind the globally popular Subnautica video game franchise decided to drop their court fight over controversial earn out bonuses.","relation":"supports","source_id":"s4"},{"locator":"officially settled the dispute and decided to withdraw all pending lawsuits as of Tuesday, the filing read.","relation":"supports","source_id":"s4"}],"assertion":"Krafton said in a statement to IGN that Krafton, Unknown Worlds and the three executives had reached a mutual settlement and agreed to dismiss all pending legal proceedings, and Yonhap, via The Korea Times, reported a Krafton regulatory filing on Wednesday 1 July 2026 saying the dispute was settled and all pending lawsuits withdrawn as of Tuesday 30 June 2026.","causal_attribution":"Both outlets relay Krafton's own announcement (a statement to IGN and a regulatory filing), one origin. The settlement terms beyond dismissal are not published by Krafton."},{"id":"c12","status":"reported","evidence":[{"locator":"had stepped down, leaving the company to look for a new boss.","relation":"supports","source_id":"s3"},{"locator":"The entire staff of Subnautica 2 developer Unknown Worlds will get their bonuses after parent company Krafton reached a settlement with studio leadership.","relation":"supports","source_id":"s3"}],"assertion":"IGN, citing Bloomberg, reported that the studio's CEO stepped down as part of the settlement and that the studio's entire staff would receive their bonuses.","causal_attribution":"Second-hand report (IGN relaying Bloomberg); Krafton's statement does not confirm these terms."},{"id":"c13","status":"reported","evidence":[{"locator":"Krafton said in a statement that it disagreed with the ruling and was evaluating its options and remained focused on delivering the best possible game for fans.","relation":"supports","source_id":"s2"}],"assertion":"Krafton said in a statement after the ruling that it disagreed with the ruling and was evaluating its options.","causal_attribution":"Krafton's litigation position as reported by the Guardian."}],"effects":[{"label":"Three studio executives terminated without valid Cause and removed from operational control during a takeover campaign that followed a CEO's ChatGPT strategy","claim_id":"c1","direction":"negative"}],"sources":[{"id":"s1","url":"https://courts.delaware.gov/Opinions/Download.aspx?id=392880","kind":"court_record","access":"read","language":"en","translation_note":"","independence_group":"delaware-chancery-opinion-2026-03"},{"id":"s2","url":"https://www.theguardian.com/technology/2026/mar/18/subnautica-2-publisher-krafton-ceo-reinstated-ai-chatgpt-failed-bid-avoid-paying-bonus","kind":"journalistic","access":"read","language":"en","translation_note":"","independence_group":"delaware-chancery-opinion-2026-03"},{"id":"s3","url":"https://www.ign.com/articles/subnautica-2-developers-entire-staff-get-their-bonuses-after-krafton-agrees-to-settlement-but-ceo-steps-down","kind":"journalistic","access":"read","language":"en","translation_note":"","independence_group":"krafton-settlement-announcement-2026-07"},{"id":"s4","url":"https://www.koreatimes.co.kr/business/companies/20260701/krafton-unknown-worlds-settle-legal-dispute-over-bonuses","kind":"journalistic","access":"read","language":"en","translation_note":"","independence_group":"krafton-settlement-announcement-2026-07"}],"version":1,"ai_roles":["institutional_use"],"contexts":["work"],"unknowns":["The date of the CEO's first ChatGPT use is not given beyond the sequence in the opinion (a legal warning on 2 June 2025 followed by the ChatGPT consultation). The incident date is the month.","The content of the deleted ChatGPT chat is unknown.","Whether ChatGPT recommended or was asked about terminating the executives is not stated in the opinion; the opinion records that the Krafton CEO had explored firing them before consulting it.","Phase Two (damages and earnout impairment) was never decided: the parties settled in July 2026, and the settlement terms beyond dismissal of all proceedings are known only from IGN's account of a Bloomberg report.","Whether Krafton appealed the March 2026 opinion before the settlement is not stated in the inspected sources.","Where the executives lived and worked is not stated in the inspected passages; the Korea Times describes the studio as a U.S. game studio and the opinion as a California corporation, which does not locate the lockout or the terminations.","The end of the harmful series is not a single date: termination letters were sent on 1 July 2025 effective 31 July, and the court counted the studio CEO's ouster as lasting until 16 March 2026."],"geography":{"basis":"The opinion is from the Delaware Court of Chancery (court country US). It describes Krafton as a South Korean company and the studio as a California corporation, and the Korea Times calls the studio a U.S. game studio; none of the inspected sources states where the executives were when locked out and terminated, so event and affected-person countries are left unknown rather than inferred from incorporation or headquarters.","court_countries":["US"],"event_countries":[],"affected_person_countries":[]},"publication":{"basis":"The full Delaware Court of Chancery opinion was read for the ChatGPT passages, the termination chronology, the holding and the remedy; the Guardian's report of the ruling and the IGN and Korea Times/Yonhap reports of the July 2026 settlement were read in full. Claims drawn from the opinion are court findings and are documented; Krafton's statements and the settlement terms are reported and attributed. The AI output (the chatbot's strategy and task-force suggestion), Krafton's use of it (the Steam lockdown as ChatGPT recommended) and the consequence for the three executives (loss of operational control and termination found to be without valid Cause) are cited separately. The affected executives are described by role.","reviewed_on":"2026-10-10"},"ai_involvement":{"basis":"Output: the court opinion finds that Krafton's CEO consulted ChatGPT after being warned that a dismissal with cause would not eliminate the earnout, that the chatbot answered the earnout would be difficult to cancel, that at ChatGPT's suggestion the CEO formed the Project X task force whose mandate was a deal or a takeover of the studio, and that ChatGPT prepared a \"Response Strategy to a No-Deal Scenario\" recommending, among other steps, locking down Steam and console publishing rights and build-pipeline access and a key summary of responses to deliver to the Key Employees. Use: the court finds that over the next month Krafton followed most of ChatGPT's recommendations and that, as ChatGPT recommended, it locked down the studio's Steam publishing rights. Consequence: the court finds the lockdown severed the studio's practical ability to launch its game and forced its CEO to the negotiating table, that the takeover and the 1 July 2025 terminations followed when negotiations stalled, and holds that Krafton breached the agreement by improperly seizing operational control from the Key Employees and terminating them without valid Cause. Limits: the strategy the opinion quotes does not list dismissing the executives, the CEO had explored firing them before consulting ChatGPT, and the first chat log was deleted, so the chatbot's first replies are known only through Slack messages.","status":"supported"},"person_relations":["informed_decision_about"]},"name":"Delaware court finds Krafton fired three Unknown Worlds executives without valid cause in a takeover that followed its CEO's ChatGPT strategy","summary":"A Delaware Court of Chancery opinion of 16 March 2026 finds that in June 2025 the CEO of Krafton, after being warned that a dismissal with cause would not eliminate a contingent earnout obligation, consulted ChatGPT. The chatbot answered that the earnout would be difficult to cancel, suggested an internal task force (Project X) whose mandate was to negotiate a deal or execute a takeover of the studio, and prepared a \"Response Strategy to a No-Deal Scenario\" that recommended locking down the studio's Steam and console publishing rights and build-pipeline access. The court found that Krafton followed most of these recommendations over the next month: it locked the studio out of its Steam publishing rights, which severed the studio's practical ability to launch its game and forced the studio's CEO to the negotiating table, posted a message on the studio's websites, and on 1 July 2025 sent termination letters to the studio's two founders and its CEO. The court held that Krafton breached the acquisition agreement by terminating the three executives without valid Cause and by improperly seizing operational control, reinstated the studio's CEO and extended the earnout period by 258 days. The opinion records that the Krafton CEO had begun exploring options including firing the executives before consulting ChatGPT, and does not find that ChatGPT recommended the terminations. Krafton said it disagreed with the ruling. On 1 July 2026 Krafton announced a mutual settlement with the studio and the three executives dismissing all pending proceedings; IGN, citing Bloomberg, reported that the studio's CEO stepped down as part of it.","incidentDate":"2025-06-01","incidentKind":"bounded_series","incidentDatePrecision":"month","exposurePattern":"unknown","reportedDate":"2026-03-16","aiSystem":"ChatGPT (OpenAI)","aiProduct":"ChatGPT","aiCompany":"OpenAI","severity":"medium","verificationStatus":"credible","harmCategories":[],"harmOutcomes":["professional_harm"],"harmOutcomeSummary":"The court found three studio executives were terminated without valid Cause and had operational control taken from them in a campaign that followed most of a ChatGPT-prepared strategy; one was reinstated by court order in March 2026 and the dispute was settled in July 2026.","frameworkFacets":[],"causationStatus":"unclear","participantUsersAffectedMin":0,"otherPeopleHarmedMin":3,"affectedCountStatus":"exact","affectedCountEvidence":"The opinion finds three Key Employees (two founders and the CEO) were terminated without valid Cause. Former shareholders represented by the plaintiff, studio staff and players are not counted.","victimAgeRange":"adult","platformType":"assistant","outcomeStatus":"resolved","primarySourceUrl":"https://courts.delaware.gov/Opinions/Download.aspx?id=392880","primarySourceLabel":"Delaware Court of Chancery opinion, Fortis Advisors v. Krafton, C.A. No. 2025-0805-LWW, 16 March 2026","firstPublishedAt":"2026-09-29T13:28:25.863533+00:00","updatedAt":"2026-10-10T03:20:34.158615+00:00","scopeVersion":"facts-v3","tags":["historical-2025","informed-decision"]}]}