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A Delaware judge ruled on March 16, 2026, that Krafton had breached its agreement with Unknown Worlds and restored CEO Ted Gill’s contractual authority over the studio, including Subnautica 2’s Early Access launch. The opinion also described Krafton CEO Kim Changhan consulting ChatGPT during the dispute, but the court—not the chatbot—made the legal findings. Bloomberg Law later reported that the parties agreed to drop their remaining court fight after the game’s release; the report did not establish whether the disputed earnout was paid.
What did the court order Krafton to do?
In Fortis Advisors LLC v. Krafton, Inc., Vice Chancellor Lori W. Will of the Delaware Court of Chancery found that Krafton breached contractual obligations connected to its acquisition of Unknown Worlds. Her March 16, 2026 post-trial opinion ordered specific performance: Gill was restored as Unknown Worlds’ CEO, with the operational authority the acquisition agreement gave him.
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That authority included making decisions about Subnautica 2’s Early Access launch and regaining the access needed to do so, including Steam publishing access. The order also barred Krafton from using the studio’s board or another corporate mechanism to evade Gill’s contractual rights. Will summarized the principle this way: “Corporate friction does not excuse a material breach of contract.”
The ruling did not return founders Charlie Cleveland and Max McGuire to their former positions. The judge considered Gill’s restored authority sufficient to remedy the breach and left him to decide whether to keep either founder as an adviser. She also recognized Krafton’s rights as Unknown Worlds’ sole stockholder to elect directors, while restricting use of the board to defeat Gill’s contractually protected authority.
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Why were Unknown Worlds and Krafton in court?
Krafton acquired Unknown Worlds in 2021. The acquisition agreement included a performance earnout of up to $250 million, which became a central point of conflict. In 2025, the disagreement escalated over Subnautica 2’s planned Early Access timing, studio leadership, control of publishing access, and the earnout.
The court’s account of that escalation came from its findings after trial. It should be read as the judge’s assessment of the evidence in this case, not as a contemporaneous statement from either company. The March opinion decided the first phase of a dispute handled in separate stages; its specific-performance order restored Gill’s authority but did not award the earnout.
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What was the connection to ChatGPT?
The opinion says Krafton CEO Kim Changhan consulted ChatGPT about how Krafton could proceed. It further says Krafton followed most of the recommendations, describing steps that included “preemptive framing” in public messaging, securing control of Steam publishing, and preparing legal-defense materials.
Those are findings attributed to the court. They do not mean ChatGPT made corporate decisions, carried out the actions, or independently determined the legal strategy. The responsibility at issue remained with Krafton and its executives.
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- Dive into a vast underwater world - sub Nautica's ocean range from shallow coral reefs to treacherous deep-sea trenches, lava fields, and bio-luminescent underwater rivers
- Scavenge, craft, and survive - after crash landing in your life pod, the clock is ticking to find water, food, and to develop equipment needed to explore as you collect resources from the ocean
- Construct underwater habitats - build Bases on the sea Floor, choosing layouts and components, and managing hull-integrity as depth and pressure Increase
- Unravel the mystery - signs abound that something is not right and you must Figure out what happened to this planet and what caused you to crash - can you find a way to make it Off the planet alive
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The opinion also addressed a June 2025 public message from Krafton saying the founders were considering an invitation to return. The judge found that statement false and said Gill and the Unknown Worlds team had nothing to do with it.
Did the judge order Krafton to pay the $250 million?
No. The March ruling did not direct Krafton to pay the maximum earnout or establish that the full amount was owed. The $250 million figure was the ceiling of the disputed performance earnout, not a payment awarded in that opinion.
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- The Mysteries Submerged on Planet 4546B: You came here in search of answers. You risked everything to get here and you will not leave until you have uncovered the truth
- Exploration: Delve into unique aquatic and terrain biomes that will unlock not only materials, but the answers that you seek
- Build Your Habitat: Crafting and building the comforts of home here. These bases will be integral for your survival from not only the wildlife, but also the harsh environment around you
As part of its March remedy, the court extended the earnout testing period by 258 days, setting September 15, 2026, as the adjusted date and preserving a contractual option to extend it to March 15, 2027. Those dates describe the relief ordered at that stage; they do not prove that an earnout was ultimately paid.
On June 30, 2026, Bloomberg Law reported that the parties agreed to drop their remaining court fight after Subnautica 2’s release. The report did not disclose the filing’s detailed terms or confirm whether Krafton paid any earnout. The payment outcome therefore cannot be established from that report.
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- Dive into a vast underwater world - sub Nautica's ocean range from shallow coral reefs to treacherous deep-sea trenches, lava fields, and bio-luminescent underwater rivers
- Scavenge, craft, and survive - after crash landing in your life pod, the clock is ticking to find water, food, and to develop equipment needed to explore as you collect resources from the ocean
- Construct underwater habitats - build Bases on the sea Floor, choosing layouts and components, and managing hull-integrity as depth and pressure Increase
- Unravel the mystery - signs abound that something is not right and you must Figure out what happened to this planet and what caused you to crash - can you find a way to make it Off the planet alive
- Disrupt the food Chain - lure and distract a threatening creature with a fresh fish, or simply swim as fast as you can to avoid gnashing jaws of roaming predators
Is Subnautica 2 out, and is the court fight over?
Steam lists Subnautica 2 as released in Early Access on May 14, 2026, with Unknown Worlds Entertainment shown as both developer and publisher. Steam describes the game as incomplete and says the developers expect Early Access to last about two to three years.
The later litigation update superseded the April 23, 2026 Game Developer report, which said claims remained after the former executives and Gill withdrew a separate allegation that Krafton violated the March order by announcing the release timeline. Bloomberg Law’s June 30 report says the sides agreed to drop the remaining court fight after the release. It does not establish the terms of that resolution or the earnout’s financial outcome.
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