The legal battle between Krafton and the former leadership of Unknown Worlds has taken an unexpected turn, revealing a dispute far more complicated than simple creative disagreements. According to new filings, the publisher behind Subnautica 2 allegedly consulted ChatGPT while searching for ways to avoid paying a massive earn-out owed to the studio’s co-founders. The claim is unusual, controversial, and paints a picture of a corporate relationship that fractured long before development delays made headlines.
The $250 Million Earn-Out at the Center of the Conflict
Unknown Worlds co-founders Ted Gill, Charlie Cleveland, and Max McGuire were removed from the studio in mid-2025. The dismissal immediately raised alarms, especially because their acquisition contract included a potential $250 million performance-based payout if Subnautica 2 hit specific sales targets.
The new court filings argue that Krafton feared the payout would reflect poorly on executives who approved the acquisition and that this concern—not development issues—drove the removals. According to the filings, Krafton executives internally discussed whether the bonus could be halted, reduced, or renegotiated. These discussions later became central evidence in the co-founders’ lawsuit.
The “Project X” Strategy
The filings reference a Krafton initiative dubbed “Project X,” which allegedly explored two possible outcomes:
- Strike a deal with the founders to reduce the payout.
- Force a takeover of the studio if negotiations failed.
According to the documents, when the founders rejected lower compensation, Krafton moved toward the takeover option—which ultimately led to their dismissal. The co-founders claim this was a deliberate attempt to shift operational control and push Subnautica 2’s release out of the earn-out window.
Why ChatGPT Entered the Conversation
One of the most surprising revelations is the allegation that Krafton’s CEO, Kim Chang-han, turned to ChatGPT to help brainstorm ways to “cancel the earn-out.”
According to the filing, the AI chatbot reportedly told the company that canceling the payout would likely be difficult, providing little help in finding a workaround. The developers claim Krafton refused to provide transcripts of these conversations, saying they “no longer exist.”
Krafton has firmly denied this version of events. In a statement, the company said the claim is a “distraction” and instead accused the former founders of deleting their own ChatGPT history to hide evidence.
Krafton’s Counter-Arguments
Krafton disputes that the firings were financially motivated. In multiple statements, the publisher insists:
- The founders had abandoned their responsibilities and were no longer meaningfully contributing to the game.
- Some executives were allegedly involved in downloading confidential company material, a claim the founders deny.
- Krafton even claims it offered to extend the earn-out period if the founders returned to their roles, but they refused.
Krafton argues that its decisions were made to protect Subnautica 2 and maintain stability within a studio it believed was being mismanaged.
Impact on Unknown Worlds and Subnautica 2
Internal reports included in the filing describe a period of low morale and distrust following the removals. According to the founders, employees felt uncertain about offering feedback or disagreeing with corporate leadership, fearing further dismissals.
This shift reportedly damaged the open-development culture that had defined Subnautica since the beginning.
Meanwhile, the game itself has been delayed to 2026, a decision that—according to third-party reporting—would automatically place the $250 million bonus out of reach.
While Krafton maintains the delay was necessary to deliver a better game, the timing has fueled speculation across the fan community.
A Timeline of Escalation
Here’s how the conflict unfolded:
- 2021: Krafton acquires Unknown Worlds for $500 million plus potential $250 million earn-out.
- 2024: Subnautica 2 targets a 2025 Early Access release.
- July 2025: Krafton removes the three co-founders.
- 2025–2026: Both sides file lawsuits, accusing each other of deception, mismanagement, and evidence destruction.
- 2026: New target window for Subnautica 2 Early Access.
Both lawsuits remain active, and neither side shows signs of backing down. The case has raised larger discussions across the industry about:
- the limits of AI within corporate decision-making,
- how earn-outs can influence studio relationships,
- and what happens when creative leadership and publishers disagree on direction.
For now, Subnautica 2 development continues under new leadership, but the court filings suggest it will be some time before the full truth becomes clear.
Read More:
- Dispatch Synergy Pairs Tier List: Best Synergy Combos
- Little Caesars Black Ops 7 Rewards Guide: How to Redeem Codes and Unlock Every Item=
- Best Black Ops 7 Graphics Settings for Max FPS and Low Lag
- All Black Ops 7 Dark Ops Challenges
- Black Ops 7 Skibidi Toilet Boss Explained: Story Meaning, Meme Origin, and Fight Details
- Where Winds Meet Giveaway Emote: How to Unlock It
- How to Get to Kaifeng in Where Winds Meet: Requirements, Unlock Steps & Travel Guide
