Court backs Subnautica 2 devs amid Krafton’s ChatGPT-linked controversy

A Delaware court has ordered the reinstatement of leadership at Unknown Worlds Entertainment - this is a big turning point in its ongoing dispute with parent company Krafton over Subnautica 2 and a $250 million earnout agreement.

The case stems from Krafton’s 2021 acquisition of the studio for $500 million, which included an additional payout tied to the sequel’s performance. In mid-2025, founders alleged that Krafton removed them and delayed the game to avoid triggering that bonus. "In the name of its bottom line, Krafton has thrown its promises out the window," the lawsuit stated at the time.

Recent court records further elaborate on those claims. They show that CEO Changhan Kim explored strategies to bypass the earnout, including consulting ChatGPT and forming an internal "Project X" task force. The plan had options to renegotiate the payout or take control of the studio. Internal messages also suggested that a takeover could be the "easier" route.

Earlier filings also referenced internal discussions around reducing proposed payouts, alongside warnings from within Krafton that dismissing leadership would carry legal risks.

Krafton had argued the move was based on project readiness and alleged mismanagement, and has since claimed the founders attempted to delete potentially relevant evidence. The publisher also stated it had offered to extend the earnout period under revised terms.

The court has now found that Krafton breached key terms of the acquisition agreement, ordering leadership reinstatement and extending the earnout window into 2026-2027.

Subnautica 2 is still scheduled for 2026, with both lawsuits still ongoing.