AI-powered IP Theft? Story's Blockchain Aims to Stop It
San Francisco-based startup Story has secured £64 million in funding to develop a blockchain platform designed to prevent AI companies from exploiting creators' intellectual property without permission. The Series B funding round, led by venture capital firm Andreessen Horowitz (a16z), values the two-year-old company at £1.8 billion. Crypto-focused venture capital firm Polychain also participated in the round.
Story's innovative solution addresses a growing concern within the creative community: the unauthorised use of copyrighted material to train powerful generative AI models. These models, like OpenAI's ChatGPT and Perplexity's AI-powered search engine, rely on vast datasets to generate sophisticated outputs, often drawing upon content protected by copyright.
Story's blockchain platform provides creators with a secure way to prove ownership and control over their intellectual property. The platform operates as a distributed database that records and verifies the origin and terms of use for digital content. This allows creators to embed licensing fees, royalty-sharing agreements, and other terms into "smart contracts" - digital agreements automatically executed on the blockchain once specific conditions are met.
By incorporating these terms into smart contracts, Story makes copyright holders' IP "programmable," enabling them to determine how their content can be used and at what cost. This eliminates the need for lengthy negotiations and legal disputes, effectively cutting out intermediaries typically involved in copyright disputes.
Story's platform is already being used by companies like Ablo, an AI tool that allows users to create custom fashion items using designs from established brands. By leveraging Story's technology, Ablo ensures that designers are appropriately compensated for the use of their intellectual property through licensing and revenue-sharing agreements.
While AI models rely on high-quality intellectual property for training, Story argues that neglecting to compensate creators for their contributions is ultimately unsustainable. "You need great IP going into AI to have a sustainable growth in AI," stated Story's co-founder and CEO, SY Lee. "Without great human-created data, AI models are not going to be able to train themselves and improve themselves."
Story's innovative solution stands out among other projects tackling AI-related IP theft. The University of Chicago's Glaze project offers a free app for artists to protect their work by subtly altering it, making it more difficult for AI models to accurately interpret and replicate their style. However, Story's comprehensive platform aims to provide a broader solution for protecting and monetising intellectual property in the rapidly evolving AI landscape.
With the new funding, Story plans to expand its platform's infrastructure and attract more developer partners. The company currently boasts over 200 developers utilising its platform for content creation with programmable IP. As the digital landscape continues to evolve, Story is poised to play a crucial role in ensuring fair compensation for creators and fostering a sustainable future for AI development.
