I never got the full story but I met this guy Jack (I forget his last name) that used to work at netscape that claimed that he developed Gauntlet at MIT by networking four 8bit atari computers together for his thesis. Supposedly Atari bought it from him or the school and he didn't get too much money from it.
Later, he made quite a bit of money from writing ports of Gauntlet for other systems in the 80's. Here's a photo of him in December 1996. Can anyone verify any of this?

Ah. Apparently there was a lawsuit. I guess after all these years, he is still asserting that he created Gauntlet. At the time he told me he even had the same character names but I don't know if that was in his original MIT version or the later version he released.
The last I heard of him was leaving Netscape in the 90's to work at WebTV.
http://www.vintagecomputing.com/index.php/archives/50from the wiki:
Origin dispute
Controversy came after the release of the game in the arcade and its subsequent port to the Nintendo Entertainment System. Ed Logg, the creator of Asteroids and Centipede is credited for Original Game Design of Gauntlet in the arcade version, as well as the 1987 NES release version. After its release, John Palevich threatened a lawsuit, asserting that the original concept for the game was from Dandy (later Dandy Dungeon), a game for the Atari 800 computer written by Palevich in 1983. The conflict was settled without any suit being filed, with Atari Games doing business as Tengen allegedly awarding Palevich a Gauntlet game machine.[1] Logg is taken off this credit in versions subsequent to the 1987 NES release. While he is credited as "special thanks" through 1986, his name is entirely removed from credits on later releases.[2] Logg currently claims no involvement in any of the Gauntlet series.[3] The game Dandy which was the basis for the threatened lawsuit was later reworked by Atari and re-published for the Atari 2600, Atari 7800 and Atari XE as Dark Chambers in 1988,[4] subsequent to the release of Gauntlet II in 1987.