Investors Back Story Protocol’s Mission to Support Copyright Holders in the AI Era
A group of investors, led by Andreessen Horowitz, has pledged $54 million to support Story Protocol, a U.S. blockchain company aiming to assist content creators in tracking and monetizing their work amidst the rise of generative AI, as reported by Bloomberg.
Amidst Low Investor Interest, Story Protocol Secures Funding
Despite the lack of investor interest in crypto startups, Story Protocol, based in San Francisco, managed to raise $54 million. Notable investors include Hashed, Endeavor, Samsung Next, David Bonderman (founder of TPG Capital), and Paris Hilton’s 11:11 media.
Andreessen Horowitz Gains Equity and Potential Access to Digital Tokens
In addition to providing funding, Andreessen Horowitz has gained equity in Story Protocol. They also have the option to purchase digital tokens if the company decides to issue them in the future, although co-founder Jason Zhao stated that this is not on their current agenda.
Story Protocol Addresses the Impact of AI on Copyright
The launch of Openai’s Chatgpt and other AI platforms has attracted millions of users, resulting in a surge of online remixes and mashups. This, in turn, has led to an increase in copyright infringement lawsuits. In response, Story Protocol is developing a blockchain-based repository for intellectual property, allowing authors to register their work and sell licensing rights through connected apps.
Co-founder Seung-Yoon Lee predicts a significant increase in remixed content created through generative AI in the next few years. To illustrate this point, Lee highlighted a viral song featuring AI-generated versions of Drake and the Weeknd’s voices, which Universal Music Group eventually shut down. However, Lee also emphasized that a complete cease and desist approach is not feasible.
Investment Enables Story Protocol’s Blockchain Launch
The $54 million investment will allow Story Protocol to launch its blockchain technology in the first half of 2024, according to Jason Zhao. This funding comes at a time when venture capital in the crypto space has decreased due to declining digital asset prices and increased regulatory scrutiny.
Hot Take: Empowering Copyright Holders in the Age of AI
Story Protocol’s innovative approach and substantial investment demonstrate the growing importance of protecting copyright in the era of generative AI. By leveraging blockchain technology, content creators can regain control over their work and monetize it effectively. This development opens up new opportunities for artists and serves as a reminder that copyright protection remains crucial in a rapidly evolving digital landscape.
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