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CEO Seeks ChatGPT’s Advice on Voiding $250 Million Contract, Overlooks Legal Counsel, and Faces Devastating Court Loss

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CEO Asks ChatGPT How to Void $250 Million Contract, Ignores His Lawyers, Loses Terribly in Court

A judge has mandated the reinstatement of a video game developer after he was unjustly fired by Krafton CEO Changhan Kim. This decision stemmed from an unusual scheme involving ChatGPT, aimed at avoiding a $250 million bonus for the developer of Subnautica 2. Krafton acquired Unknown Worlds Entertainment, the studio behind Subnautica, for $500 million in 2021, with a performance-based bonus contingent on the sequel’s success. As projections indicated a likely payout, Kim sought ChatGPT’s advice on orchestrating a corporate takeover to remove the studio’s founders. Internal communications revealed legal risks in avoiding the payout, but Kim pressed forward with the AI’s guidance. His strategy backfired, leading to public backlash against a bizarre communication and eventual legal battles. The ongoing case underscores the legal ramifications of misusing AI in corporate strategies and reinforces the critical need for ethical leadership in the gaming industry. Krafton is currently evaluating its options following the ruling.

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