LLMHigh
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