Krafton’s newfound commitment to artificial intelligence adds another twist to the ongoing lawsuit between the developer and publisher.

Shortly after Krafton confirmed its commitment to an AI-first approach, the latest preliminary hearing document in the legal dispute between the co-founders of Subnautica developer Unknown Worlds claims that Krafton CEO Kim Changhan turned to ChatGPT to find a way to avoid paying the $250 million bonus to Unknown Worlds developers that sparked the scandal. Krafton has made several allegations against the co-founders, including abandoning their positions at Unknown Worlds, stealing from Krafton and Unknown Worlds, and being willing to destroy the reputation of the studio they founded just to receive a large payout.

In turn, the co-founders have leveled accusations against Krafton, claiming that its management deliberately sabotaged Unknown Worlds to delay the launch of Subnautica 2‘s early access in the hope that the studio would miss out on its bonus. They also claim that Kim admitted to them that paying Unknown Worlds the substantial bonus would be disastrous and extremely embarrassing for Krafton.

Krafton denies that Kim acknowledged it would be a financial disaster for Krafton to pay the bonus. However, the pre-trial filing alleges that Krafton took direct steps to avoid paying the bonus, not only for financial reasons, but also because Kim felt it would be a professional embarrassment and make Krafton appear easy prey. The anti-bonus effort was allegedly called Project X, and the filing also claims that the co-founders’ dismissal was part of Kim’s efforts to avoid paying the bonus. Not surprisingly, given that Krafton tries to present itself as a company involved in AI and generative AI, Kim even asked ChatGPT if there was a way to avoid paying the bonus.

“Desperate to avoid such a professional embarrassment, Kim was obsessed with finding a way to prevent Krafton from having to pay the earnout. Maria Park told Kim that it seems highly likely the earnout will be paid if the sales goal is achieved, even if Krafton is dismissed for cause. Kim turned to artificial intelligence to help him brainstorm ways to avoid paying the earnout. ChatGPT likewise advised that canceling the earnout would be difficult. But Kim was undeterred,” the pre-trial brief reads.

The filing also lists Krafton’s landmark meetings with Unknown Worlds, which Kim considered the first steps in resolving the alleged problem. These meetings delayed the release of Subnautica 2. Krafton allegedly used these meetings as a basis for launching a campaign to delay the game. However, this was only the beginning of Project X. The filing further alleges that Krafton executives planned a coordinated campaign to avoid payment by any means necessary. This included taking over Unknown Worlds’ website and social media channels. Krafton also initiated a backup “takeover scenario” plan in case the co-founders did not agree to change the earnout agreement.

The filing also refutes Krafton’s main claim that the founders abandoned their posts. Krafton tried to use Charlie Cleveland’s filmmaking activities as evidence that he was neglecting his duties. However, the pre-trial filing includes Slack messages that allegedly prove Krafton was aware of Cleveland’s activities and even considered incorporating them into his role as the chances of making a Subnautica movie increased. In a statement sent to Kotaku, Krafton denied the allegations in the pre-trial filing, claiming that its primary commitment has always been to deliver the best possible game to Subnautica fans.

“At the heart of every decision Krafton makes are the fans, who deserve the best possible experience. Krafton made leadership changes at Unknown Worlds when the former executives focused on other priorities instead of Subnautica 2. Despite Krafton’s offer to extend the executives’ earnout period if they returned to their positions, they refused and improperly retained hundreds of thousands of confidential documents from Unknown Worlds and Krafton just before and after their termination. They also failed to preserve certain files after their employment ended. Throughout this legal process, Krafton remains focused on its commitment to delivering the best possible game to Subnautica fans. Krafton will continue to present evidence proving that the former executives did not fulfill their duties as the legal proceedings move forward,” Krafton wrote.

Needless to say, this will be an extremely interesting case to follow once it goes to court.

Source: WCCFTech, Game Developer, Kotaku