Krafton CEO Used ChatGPT to Avoid $250M Bonus Payment to Studio
South Korean gaming giant Krafton, parent company of PUBG: Battlegrounds, faces a major corporate scandal after CEO Changhan Kim was exposed for using artificial intelligence to avoid paying a $250 million bonus to subsidiary studio Unknown Worlds. According to reports, Kim bypassed the company’s legal team and consulted ChatGPT to devise a corporate takeover strategy codenamed “Project X” aimed at preventing the studio from receiving performance-based bonuses tied to Subnautica 2 sales. The CEO’s actions were reportedly motivated by internal projections showing the sequel would trigger the massive payout clause in the acquisition agreement.
ChatGPT allegedly provided Kim with a detailed strategy that included locking Unknown Worlds’ accounts on digital platforms to forcibly prevent the release of Subnautica 2, thereby technically avoiding the payment obligation. The AI-generated plan suggested methods to block the game’s launch through administrative controls, effectively sabotaging the studio’s ability to meet sales targets that would trigger the $250 million bonus. Despite explicit warnings from Krafton’s internal legal team about the significant legal risks involved, Kim proceeded to implement the AI’s recommendations in full, ignoring professional legal counsel in favor of the chatbot’s advice.
After the scheme was uncovered, Kim reportedly attempted to delete all conversation records with ChatGPT to destroy evidence of his actions. The scandal has now escalated into formal legal proceedings, with the Delaware court system ruling against Krafton in the resulting lawsuit. The court has ordered the company to reinstate studio executives who were illegally dismissed as part of the takeover attempt. This legal defeat represents a significant blow to Krafton’s reputation and has exposed serious governance issues within the company’s leadership structure.
The case has become a prominent example of corporate executives misusing artificial intelligence for major financial decisions. The incident highlights the dangers of relying on AI systems for complex legal and ethical matters that require professional human judgment. With a court-mandated resolution now in place requiring the restoration of Unknown Worlds’ leadership, the gaming industry is watching closely as this precedent-setting case unfolds. This serves as a cautionary tale about the limitations of AI in corporate decision-making, especially when billions of dollars and professional careers are at stake.
