Krafton's CEO largely followed ChatGPT's recommendations during a $250 million dispute with Unknown Worlds Entertainment leadership, leading to improper removal of the studio head and a Delaware court ordering reinstatement.
In 2021, South Korean game developer Krafton Inc acquired Unknown Worlds Entertainment, maker of 'Subnautica,' for $500 million upfront with a potential $250 million earnout if certain targets were met. The acquisition agreement stipulated that the studio would remain independent with leadership retaining operational control and only being removable for cause. In June 2024, as internal projections showed the studio would trigger the earnout payment, Krafton CEO Changhan Kim feared he was caught in a 'pushover' deal and turned to ChatGPT for advice on how to get out of it. Over the following month, Krafton followed most of ChatGPT's recommendations, including forming an internal task force to negotiate a new deal or execute a takeover, developing a communications strategy focused on fan trust, securing publishing rights over 'Subnautica 2,' and preparing 'systematic material of legal defense.' When unable to get leadership to renegotiate the earnout, Krafton removed the studio leaders, alleging they had deceived the company about diminishing time spent at the studio. Delaware Vice Chancellor Lori Will rejected this claim and ordered that operational control be returned to CEO Ted Gill, also extending the period for meeting earnout criteria.
Domain classification, causal taxonomy, severity scores, and national security assessments were LLM-classified and may contain errors.
Users anthropomorphizing, trusting, or relying on AI systems, leading to emotional or material dependence and inappropriate relationships with or expectations of AI systems. Trust can be exploited by malicious actors (e.g., to harvest personal information or enable manipulation), or result in harm from inappropriate use of AI in critical situations (e.g., medical emergency). Overreliance on AI systems can compromise autonomy and weaken social ties.
Human
Due to a decision or action made by humans
Intentional
Due to an expected outcome from pursuing a goal
Post-deployment
Occurring after the AI model has been trained and deployed
