Krafton CEO Used ChatGPT to Nix $250M Subnautica Bonus: Lawsuit

The legal battle between Krafton and the founders of Subnautica developer Unknown Worlds (UWE) has escalated dramatically. New court filings alleged that the publisher’s CEO used ChatGPT to find ways to avoid paying a $250 million bonus. The founders, Charles Cleveland, Max McGuire, and Ted Gill, were fired in July 2025 and claim Krafton deliberately sabotaged the game to avoid the payment.

According to a new pre-trial brief, Krafton CEO Kim Chang-han allegedly turned to artificial intelligence to find a loophole, but reportedly even ChatGPT advised that it would be "difficult to cancel the earn-out." The $250 million bonus was a key part of Krafton's 2021 acquisition of UWE, promised if Subnautica 2 hit its early access launch and revenue goals by the end of 2025. The founders, who were set to receive the bonus, insist they were on track to meet this deadline.

The lawsuit also alleges that when the AI failed to provide a solution, Krafton created a secret task force, "Project X", to either force the founders into a new, cheaper deal or "execute a 'Take Over'" of the studio. When the founders refused to accept a lower payout, Krafton fired them. Shortly after the July 2025 terminations, Krafton officially delayed Subnautica 2's early access release into 2026, making the 2025 bonus target impossible to claim.

Krafton Denies Claims, Alleges Founder Misconduct

Krafton has strongly denied these allegations, calling them a "distraction" from the founders' own misconduct. The publisher’s defence has shifted after initially claiming the game wasn't ready. Krafton now alleges the founders had abandoned their jobs to work on personal projects and stole confidential data. 

Krafton also claims the founders are the ones hiding information, pointing to a message from Charlie Cleveland telling the others to "delete anything 'incriminating'" from their own ChatGPT accounts.

This legal drama is unfolding as Krafton publicly reinvents itself as an "AI-first company". Following a speech by CEO Kim Chang-han in October, the company has reportedly started offering buyouts to reduce its workforce, with reports from BusinessKorea suggesting packages of up to three years' salary. This internal shakeup is happening while the publisher fights a very public battle with the creators of one of its most anticipated games.

For fans, this messy fight raises serious concerns about the future of Subnautica 2. The founders claim positive playtest data from May 2025 proves the game was on track. Now, the highly anticipated sequel, which remains one of the most wishlisted games on Steam, is caught in the middle of a legal storm, leaving its 2026 release window in question.