Delaware Court Finds Krafton's AI-Driven Strategy Undermines Trust in Unknown Worlds Executives

July 1, 2025

A Delaware Chancery opinion found that, after being warned of potential consequences, Krafton's CEO employed an artificial intelligence (AI) tool for a 'no-deal' strategy and followed most of its recommendations. This strategy was linked to Krafton's actions, including the lockout of publishing control, unilateral messaging, wrongful termination of Ted Gill, Charlie Cleveland, and Max McGuire, and seizure of studio control. The court emphasized that these actions contravened established norms of trustworthy AI use. Contributors—JOIN US—are invited to join the HISPI Project Cerebellum TAIM, where we strive for safe and secure AI development, governance, and harm prevention, fostering a responsible AI ecosystem.
Alleged deployer
krafton, changhan-(ch)-kim
Alleged developer
openai
Alleged harmed parties
unknown-worlds-entertainment, ted-gill, max-mcguire, former-shareholders-of-unknown-worlds-entertainment, charlie-cleveland

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Source

Data from the AI Incident Database (AIID). Cite this incident: https://incidentdatabase.ai/cite/1449

Data source

Incident data is from the AI Incident Database (AIID).

When citing the database as a whole, please use:

McGregor, S. (2021) Preventing Repeated Real World AI Failures by Cataloging Incidents: The AI Incident Database. In Proceedings of the Thirty-Third Annual Conference on Innovative Applications of Artificial Intelligence (IAAI-21). Virtual Conference.

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