Investors led by Andreessen Horowitz have backed a company that has set out to help content creators monetize their work in the age of artificial intelligence (AI). The tech firm intends to employ blockchain technology to track remixes and mashups that have been spreading online since the invent of AI tools like Chatgpt.
Investors Pledge $54 Million to Support Story Protocol’s Plan to Help Copyright Holders in AI Age
U.S. blockchain company Story Protocol has won the support of a group of investors led by American venture capital firm Andreessen Horowitz for its plan to help content creators track and monetize their work in the times of generative AI, Bloomberg reported.
Against the backdrop of low investor interest in crypto startups, the San Francisco-based tech firm managed to raise $54 million. Among those who offered funding for its project are also Hashed, Endeavor, Samsung Next, TPG Capital founder David Bonderman, and Paris Hilton’s 11:11 media.
Besides receiving equity in Story, whose valuation was not disclosed, Andreessen has also obtained the right to buy digital tokens, if the company decides to issue such, although co-founder Jason Zhao indicated that it does not currently intend to do so.
The launch of Openai’s Chatgpt and other platforms utilizing artificial intelligence attracted millions of users to AI tools which led to a spike in remixes and mashups online, the report notes. Lawsuits filed by copyright holders have also surged in number.
In response to this trend, Story Protocol is building a blockchain-based repository of intellectual property for various types of content, including prose, images and audio, that an author would be able to register their work with and then use connected apps to sell licensing rights.
“In a year or two the level of remixed content through GenAI is going to be so much higher,” remarked Story’s other co-founder, Seung-Yoon Lee. He gave an example with a song featuring AI-generated versions of the voices of artists Drake and the Weeknd which became viral before it was shut down by Universal Music Group. At the same time, Lee also pointed out:
You can’t go and cease and desist everything.
The investment will allow Story Protocol to launch its blockchain technology in the first half of 2024, Jason Zhao noted. It comes despite a venture capital drought in the crypto space with funding for startups declining since prices of digital assets dropped last year and amid an ongoing regulatory crackdown on the industry.
Do you think crypto companies should develop more products with AI applications to attract investment? Share your thoughts on the subject in the comments section below.