CEO’s $250 Million ChatGPT Mistake Smacked Down in Court 

ChatGPT‑driven firings backfire, costing Krafton millions and a court‑ordered executive reinstatement

BY MOSES JEANFRANCOIS, NEWS WRITER @MOSESJEANS

 A Delaware judge ruled Monday that gaming publisher Krafton must reinstate one of three fired CEOs after the company relied on ChatGPT for legal guidance in an attempt to avoid paying performance bonuses. 

Krafton, a gaming publisher, acquired game developer Unknown Worlds in 2021. Under the terms of that deal, founders Ted Gill, Charlie Cleveland, and Max McGuire retained operational control and could only be terminated for cause. But in 2023, just as the studio was preparing to launch Subnautica 2, Krafton removed the trio, prompting a legal battle over compensation that ranged from $191.8 million to $242.2 million. 

According to court filings, Krafton CEO Changhan Kim sought ways to cut costs and consulted ChatGPT for legal advice, despite having access to an internal legal team. The ruling states that Krafton followed steps generated by ChatGPT, including restricting Unknown Worlds’ ability to release Subnautica 2 on the video game distribution platform Steam, moves the court described as “newly manufactured justifications” for termination. 

The court ordered only Gill reinstated, but emphasized that he has the authority to rehire Cleveland and McGuire. 

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A Krafton spokesperson told Kotaku that “today’s ruling does not resolve the former executives’ claim for damages or an earnout related to Subnautica 2, with further litigation still pending.” The company added that its focus remains on delivering “the best possible game to Subnautica’s fans.” 

AI Tools Continue Their Push Into the Workplace 

The Krafton case highlights a broader trend: generative AI tools like ChatGPT are quickly becoming embedded in corporate workflows, sometimes in ways companies aren’t prepared to handle. 

Accenture CEO Julie Sweet has been vocal about the role AI now plays inside the $64 billion consulting firm. “AI at Accenture is how we do work,” she said on the Rapid Response podcast. “If you want to get promoted, you’ve got to do the things that we do in order to operate at Accenture.” Sweet began requiring AI training for the company’s top 50 leaders in late 2022, shortly after ChatGPT’s launch. 

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