Delaware court finds Krafton fired three Unknown Worlds executives without valid cause in a takeover that followed its CEO's ChatGPT strategy
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.
AI involvement supported · Causal attribution unclear · 4 sources, 2 underlying accounts · Added 29/09/2026