Gaming CEO Ignores Lawyers for ChatGPT Legal Advice and Loses $250 Million Battle
A high-stakes gamble on AI-generated legal strategy led to a spectacular courtroom defeat for an executive attempting to dodge a massive contractual payout.
The CEO of Krafton attempted to terminate the head of the studio developing Subnautica 2 in an effort to void a contract potentially worth $250 million. Ignoring the explicit warnings of his own legal team, the executive reportedly used ChatGPT to formulate a plan to push the developer out and avoid paying a substantial bonus. The scheme failed under judicial scrutiny, resulting in a court order to reinstate the developer and serving as a cautionary tale about the pitfalls of using generative AI for complex legal maneuvers.
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