Valve's early history with Counter-Strike 2 dates back to 2003, during a crucial period when the company was struggling financially and locked in a legal battle with Vivendi over Half-Life IP rights.

During this challenging time, Valve COO Scott Lynch secured a vital publishing deal for Counter-Strike 2 to keep the company afloat. The deal was so significant that Gabe Newell, known for his knife-making hobby, crafted a custom celebratory knife inscribed with "Counter-Strike 2."

The deal, likely with Electronic Arts, was structured to take effect after Half-Life 2's release. However, the publisher eventually opted to terminate the agreement and receive their investment back. This early version of Counter-Strike 2 likely evolved into what became Counter-Strike: Source in 2004, co-developed by Valve and Turtle Rock using the Source engine.

The publishing deal proved crucial in Valve's legal battle with Vivendi, as the influx of capital helped the company continue operations and ultimately win the lawsuit in April 2005. The settlement resulted in Vivendi ceasing distribution of Valve's games and returning the licenses to Valve.

Two decades later, Counter-Strike 2 finally released in 2023, marking a full circle moment from those early development plans in 2003. This history demonstrates how the game's journey was intertwined with Valve's growth from a struggling studio to an industry leader.