A Gaming CEO Asked ChatGPT How to Avoid Paying a $250 Million Bonus. It Didn't Work

A Delaware court has ruled that Krafton violated its contract with the game development studio Unknown Worlds by removing its CEO, Ted Gill, in an attempt to avoid a $250 million bonus tied to Subnautica 2's performance.

The bonus was contingent on meeting specific sales targets for the game's 2025 early access launch. Krafton delayed the release, arguing it would prevent the conditions from being met.

The court ordered Krafton to reinstate Gill and restore his operational authority over the studio, extending the window for the bonus conditions until September 2026.

Why the Move Happened

Krafton's CEO, Changhan Kim, reportedly used ChatGPT to devise a strategy to avoid paying the bonus. Based on the AI's advice, Kim orchestrated the removal of Gill and other executives, which the court ruled was a breach of contract.

The bonus structure was part of the 2021 acquisition of Unknown Worlds for $500 million, with additional compensation tied to future performance metrics. Krafton's actions were seen as an attempt to circumvent these financial obligations.

How Markets Responded

While the ruling is specific to the gaming sector, it has sparked broader discussions about the use of AI in corporate strategy and contract interpretation. Legal experts noted the case could set a precedent for how courts assess AI-influenced business decisions.

Markets have generally remained stable, with no significant movement in Krafton's stock following the ruling. The ruling has been more of a legal and operational issue than a market-moving event.

What Analysts Are Watching

Analysts are monitoring the potential impact on future AI use in corporate decision-making. The case has raised questions about the legal liability of using AI advice in high-stakes financial decisions.

Investors are also watching the broader AI industry for signs of regulatory shifts. Companies like C3.ai and BigBear.ai, which rely heavily on AI and machine learning, are under scrutiny as they navigate evolving market expectations.

The court's decision may influence how companies structure their contracts moving forward, particularly in industries where performance-based compensation is common. Legal advisors are expected to incorporate AI usage clauses into agreements to clarify accountability.