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Delaware Court Found Krafton Followed Most of ChatGPT's Recommendations in Campaign that Wrongfully Terminated Unknown Worlds Executives and Seized Operational Control

Occurred
Jul 1, 2025
Published
Mar 16, 2026
Source
AI Incident Database

Summary

A Delaware Chancery opinion found that, after being warned that firing Unknown Worlds leaders would not eliminate earnout obligations, Krafton's CEO turned to ChatGPT for a "no-deal" strategy and then followed most of its recommendations. The court tied that strategy to Krafton's lockout of publishing control, unilateral public messaging, wrongful termination of Ted Gill, Charlie Cleveland, and Max McGuire, and seizure of studio control.

Developers

  • OpenAI

Deployers

  • Krafton
  • Changhan (CH) Kim

Harmed parties

  • Unknown Worlds Entertainment
  • Ted Gill
  • Max McGuire
  • Former shareholders of Unknown Worlds Entertainment
  • Charlie Cleveland

Classification

Category confidence: 90%
Severity confidence: 85%

Rationale: ChatGPT provided flawed legal/business advice leading to wrongful terminations and legal liability.

Classifier: Qwen/Qwen3.5-35B-A3B-FP8

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