Krafton and Unknown Worlds: game studio executives terminated in a takeover campaign that followed a CEO's ChatGPT strategy, court finds no valid cause
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, obtained a "Response Strategy to a No-Deal Scenario" and followed most of its recommendations over the next month. Krafton locked the studio out of its game publishing platform, 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 the terminations were without valid Cause, reinstated the studio's CEO and extended the earnout period. The opinion does not find that ChatGPT recommended the terminations. Money damages are reserved for a second phase.
AI involvement supported · Causal attribution unclear · 1 source · Added 29/09/2026