A Delaware judge has ruled that Krafton must reinstate Ted Gill as CEO of Unknown Worlds Entertainment, finding the publisher violated contract terms when firing Gill and other co-founders. "To remedy these breaches, Gill is reinstated as CEO of Unknown Worlds with full operational authority over the studio," wrote judge Lori W. Will. Krafton expressed disagreement with the ruling but acknowledged further litigation over potential damages remains pending.

The legal battle stems from a $250 million bonus agreement when Krafton acquired Unknown Worlds in 2021. The contract promised executives and staff would share in the bonus if revenue targets were met by 2025. Krafton delayed Subnautica 2, making those targets unreachable. Documents reveal CEO Changham Kim allegedly nixed the payout due to concerns of "professional embarrassment" and reportedly consulted ChatGPT to devise strategies avoiding the bonus.

Judge Will criticized Kim for contriving a corporate "takeover" strategy through AI consultation, calling out his apparent regret over committing to the payout. While Gill regains his position, ongoing litigation continues. Krafton maintains Subnautica 2 will arrive "sooner rather than later," though the studio's leadership uncertainty and bonus disputes have already impacted development timelines and team morale.