CEO used ChatGPT — contract escape failed
A CEO who asked ChatGPT how to exit a $250M contract found the AI advice disastrously off‑base, underscoring that generative models can make costly legal errors when used without expert oversight. The episode is a reminder that AI should augment, not replace, human legal and fiduciary judgment. (vikistars.com)
Vice Chancellor Lori W. Will of the Delaware Court of Chancery ordered on March 16, 2026 that Krafton reinstate Ted Gill as CEO of Unknown Worlds and restore his full operational authority. (bloomberg.com (bloomberg.com)) The court found Krafton breached its acquisition agreement tied to a potential $250 million earnout and extended the earnout window to Sept. 15, 2026 with an option to extend further to March 15, 2027. (bloomberg.com (bloomberg.com)) Deal documents cited in the opinion show Krafton paid $500 million up front in 2021 and agreed that Unknown Worlds would get $3.12 for every dollar of revenue above a $69.8 million threshold, up to a $250 million cap. (bloomberg.com (bloomberg.com)) The opinion records that CEO Changhan Kim consulted an AI tool beginning in June and that company teams largely followed that tool’s recommended “Project X” steps — including forming an internal task force and pursuing a takeover-like approach — before removing studio leadership. (kotaku.com (kotaku.com)) Vice Chancellor Will described Krafton’s articulated reasons for the July 2025 dismissals as “dubious” and “newly manufactured” when ruling the removals breached the parties’ employment and transaction covenants. (bloomberg.com (bloomberg.com)) Krafton issued a statement that it “respectfully disagree[s]” with the ruling and said it is evaluating its options while separate litigation over monetary damages remains pending. (bloomberg.com (bloomberg.com)) The contested opinion and related filings are cataloged in the Delaware Court of Chancery record for Fortis Advisors, LLC v. Krafton, Inc., as summarized on Justia’s case page. (law.justia.com (law.justia.com))
