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AI Guided Krafton CEO in Studio Dispute
17 Mar
Summary
- Krafton CEO used ChatGPT for a $250 million dispute.
- Judge ordered Krafton to reinstate a studio head.
- AI chatbot advised on takeover strategy and legal defense.
A Delaware judge has mandated that South Korean game developer Krafton Inc. reinstate the head of one of its video game studios. This decision arose from a dispute where Krafton's CEO, Changhan Kim, reportedly relied heavily on guidance from the AI tool ChatGPT.
The core of the conflict involved Krafton's $500 million acquisition of Unknown Worlds Entertainment, the creators of "Subnautica." As the studio neared a potential earnout payment of up to $250 million, Krafton's CEO, fearing an unfavorable deal, sought AI assistance.
Over approximately one month, Krafton implemented numerous recommendations provided by ChatGPT. These suggestions included forming a task force to renegotiate terms or execute a studio takeover, along with crafting a communication strategy and preparing legal defenses.
Ultimately, Krafton attempted to remove the studio leadership, alleging deception regarding their time commitment, a claim the judge dismissed. The court ordered that operational control be returned to the studio's CEO and extended the deadline for meeting earnout conditions.
