Podcast Summary
Partnership between Dolly and Shutterstock raises copyright concerns for generative art and IP: Apple introduces new smart home features, Dolly partners with Shutterstock, Apple reverses NFT stance, antitrust rulings against Google, and fall season excitement discussed on This Week in Startups.
There were several noteworthy developments discussed in the latest episode of "This Week in Startups." Dolly, an open AI company, partnered with Shutterstock, raising questions about copyright implications for generative art and IP. Apple introduced new smart home features, including exclusive smart locks, and there were updates on Apple's NFT reversal and antitrust rulings against Google. Additionally, the podcast hosts shared their excitement for the fall season and upcoming holidays. A common theme was the integration of technology into everyday life, from smart home devices to generative art, and the resulting implications for business and individuals. Another topic touched upon was the competition for consumer attention and dollars, with companies vying for market share and consumer loyalty. Overall, the episode provided insights into the latest trends and developments in technology, business, and culture.
AI-generated stock images: A new trend with ethical concerns: OpenAI's Dolly 2 text-to-image generator integrated into Shutterstock's platform, raising ethical concerns for artists who feel their work was used to train the AI and now sold without consent.
The use of artificial intelligence (AI) in generating and selling stock imagery is a growing trend, as seen in the partnership between OpenAI and Shutterstock. This collaboration involves OpenAI's Dolly 2 text-to-image generator being integrated into Shutterstock's platform, allowing for the sale of AI-generated images. However, this development has raised ethical concerns among artists, who argue that their work was used to train the AI and now will be sold as stock art without their consent. Shutterstock's CEO acknowledges the importance of ethical practices in this evolving creative landscape, but a potential lawsuit from artists could be on the horizon. The stock market response to this partnership shows that there is still demand for stock imagery, despite the economic downturn in the industry. Overall, this partnership represents a significant step forward in the commercialization of AI-generated content.
AI use in creating derivative works raises copyright concerns: Shutterstock addresses copyright concerns by limiting sales to AI-generated art made using their existing integrations and implementing a contributor fund to reimburse creators
The use of AI to create derivative works from original content raises complex copyright issues. In some cases, such as work-for-hire, the company owns the rights to the work. However, in other cases, creators retain specific rights, like licensing deals for characters or mechanical and derivative product licenses. For instance, in the Marvel Comics example, artists might have licensing deals for their characters. In the case of Shutterstock, they likely bought the rights to resell images, but not all of them may be work for hire. Creating derivative works using AI, such as a female Wolverine in the Frank Miller style or a pineapple basket in the style of a famous photographer, can impede the original creator's ability to do commerce in the world. This is especially true for less powerful creators who may not have the resources to pursue legal action. To address these concerns, Shutterstock has taken two steps. First, they are only allowing the sale of AI-generated art made using their existing integration, which they have presumably acquired the rights to. Second, they are implementing a contributor fund to reimburse creators when the company sells their work to train text-image AI models. However, this fund does nothing to head off the criticism that the original creators are not being fairly compensated for the use of their work to train the AI models.
AI use in art and copyright issues: Proving AI art use in training data may lead to legal battles, platforms like Getty have banned AI art, ethical organizations can start derivative works programs to avoid disputes, startups can amplify organic posts with paid LinkedIn ads for product-market fit.
The use of AI in creating art and the resulting copyright issues are likely to cause lengthy legal battles. The source believes that proving an image was used in training data for an AI algorithm may be difficult, leading to the need for companies to start over and obtain proper permissions from content creators. The source also mentions that platforms like Getty have already banned the use of AI art due to copyright licensing complications. For ethical organizations like Shutterstock, the source suggests starting a derivative works program and paying content creators upfront for their images to avoid legal disputes. On a different note, a tactic for startups to figure out product-market fit is amplifying organic posting with paid advertising on LinkedIn. This strategy can help reach a larger audience and gain traction with specific industries or job titles.
Ask for permission before using others' content: Businesses should proactively ask for permission before using others' content to avoid legal action and reputational damage, and build stronger relationships.
It's crucial for businesses, especially early-stage startups, to both amplify their organic content with paid advertising and obtain permission before utilizing others' content, such as data or intellectual property. The importance of this strategy was highlighted in the discussion about the potential impact of AI-generated art on the stock photo industry. LinkedIn's B2B ad targeting makes it easy for businesses to extend their reach to engaged audiences, leading to a 13x lift in unique reach for those who combine organic and paid strategies. However, the right approach is to ask for permission before using others' content, rather than seeking forgiveness after the fact. This lesson was learned from the early days of RSS readers and blog feeds, where permission was required to display ads. Similarly, in the context of AI-generated art, companies like Shutterstock have taken the stance that they own the data used to train their models and have licensed it, giving them the right to generate and sell AI-generated art based on that data. In contrast, Getty Images has stated that it will not participate in the AI and generative art future, potentially putting it at a disadvantage in the long term. Overall, the key takeaway is to be proactive and ask for permission when dealing with others' content, rather than risking legal action or reputational damage. By following this approach, businesses can build stronger relationships and stay ahead of the competition.
Respecting Copyright and Seeking Permission for AI-Generated Content: Avoid legal issues and maintain ethical business practices by respecting copyright and seeking permission before using others' work in AI-generated content.
Disregarding permission to use copyrighted material, whether it's podcast episodes or images, can lead to consequences. The example given was about a website that took clips from podcasts without permission and was eventually taken down due to the content owner's intervention. However, the speaker also acknowledged the existence of a culture of use and taking, and the potential amplification of this culture by AI. The speaker emphasized the importance of asking for permission before using copyrighted material, especially in the context of AI-generated content. The speaker also warned about the potential loss of jobs in the illustration and photography industries due to AI-generated content. In summary, it's crucial to respect copyright and seek permission before using others' work to avoid legal issues and maintain ethical business practices.
AI in Art: Legal Implications and Ethical Considerations: The use of AI in creating art raises legal and ethical concerns, particularly regarding permissions and licenses for commercial use, potential revelation of personal information, and the need for ethical practices in the industry.
The use of AI in creating art is a game-changer in the industry, and it's here to stay. However, the legal implications of using trained AI models to generate commercial art are still unclear. Shutterstock's recent move to create an AI-generated art platform has sparked controversy, with many predicting that this will lead to legal challenges and potential injunctions. The future of AI-generated art lies in obtaining proper permissions and licenses from the original creators or their estates. The use of personal data and potential revelation of personal information in the training of these models is also a concern. It's essential for artists to hold their ground and fight for their rights, as this issue is likely to end up in the Supreme Court. In the meantime, companies like Getty Images are also exploring ways to monetize AI-generated art by partnering with established artists and charging licensing fees for the use of their styles. Overall, the art industry is at a crossroads, and it's crucial to navigate this new terrain carefully and ethically.
Cyber Insurance for Startups and Apple's Entry into Smart Home Market: Startups need cyber insurance, Apple enters smart home market with new features, Apple's exclusive smart lock from Level, Potential challenge to Google and Amazon, Apple's new hardware-software approach
Cyber insurance is a must-have for startups in today's digital world. The process of obtaining this insurance through a nimble organization like Embroker is quick, cost-effective, and transparent. Meanwhile, in the tech world, Apple has entered the smart home market with its new Home Key feature and a smart lock exclusive to iOS 16, made by the startup Level. This move marks Apple's first significant foray into smart home technology, potentially challenging Google and Amazon's dominance in the space. However, it's worth noting that Apple didn't develop the lock itself but instead made it exclusive to their platform. This could be a new approach for Apple, blurring the lines between hardware and software. Overall, these developments underscore the importance of cybersecurity for startups and the growing influence of tech giants in various markets.
The future of home security: virtual keys and time-based access: Home security is shifting towards virtual keys and time-based access, allowing homeowners to grant access to service providers without physical keys, saving time and providing an additional layer of security. This trend is popularized by Airbnb and similar platforms.
The future of home security is moving towards virtual keys and time-based access, allowing homeowners to grant access to service providers without the need for physical keys. This not only saves time and effort but also provides an additional layer of security. Airbnb and similar platforms are embracing this technology, making it increasingly popular. The convenience and security benefits are significant, and this trend is expected to continue. Additionally, advancements in technology, such as glitter bombs and stink bombs, are being used to deter package theft. In other news, Venus Aerospace is developing a hypersonic space plane called the Stargazer, which has the potential to make one-hour global travel a reality. This technology could revolutionize travel, making it faster and more efficient than ever before. Overall, these advancements in technology are making our lives more convenient and secure, and we can look forward to even more innovations in the future.
New Supersonic Jet Startup Announces Ground Test and High-End Price: Venus, a new startup, plans to test its supersonic jet, Stargazer, in 2025, with a seating capacity of 12 and a hefty price tag similar to first-class tickets. Despite high fuel consumption and costs, its time-saving capabilities and potential military applications make it appealing.
A new startup named Venus is developing a supersonic passenger jet, the Stargazer, capable of reaching Mach 10 and flying at altitudes of 170,000 feet, with a seating capacity of 12 passengers. The first ground test is predicted to occur in July 2025, and the tickets are estimated to cost around the same price as a first-class commercial aircraft ticket. Despite the high fuel consumption and expensive ticket prices, the Stargazer could still be attractive to celebrities, businesspeople, and those engaging in lucrative deals due to the significant time savings. The plane's high altitude reduces air resistance, potentially lessening fuel needs. The startup has raised $29 million in funding, and the government is expected to invest significantly due to military applications. Additionally, Kalshi, a regulated exchange offering financial prediction markets, has launched an Election Forecasting Challenge, allowing participants to make predictions on congressional races and potentially win $100,000 for a perfect call.
US Pushes for Domestic Semiconductor Manufacturing, Faces Skills Shortage: The US needs to train 50,000 semiconductor engineers over the next five years due to a skills shortage, despite $200 million allocated for worker training under the CHIPS Act. The current annual production of semiconductor engineers at Purdue is only 150, necessitating a curriculum overhaul and potential immigration incentives.
The US economy is making a significant push to boost semiconductor manufacturing domestically, but there's a major challenge: a shortage of engineers with the necessary skills. The CHIPS Act aims to address this by allocating $200 million for worker training and encouraging schools like Purdue to expand their semiconductor engineering programs. However, Purdue currently graduates only about 150 semiconductor engineers per year, and the US needs 50,000 over the next five years. This means a significant overhaul in curriculum and training is needed. The average semiconductor engineer salary is currently $114,155, and it's likely to increase as demand grows. The US may also need to incentivize immigration to fill the gap. It's a complex issue that will require a multi-faceted approach, including a PR push to attract students to the field and expand existing visa programs.
US export controls disrupt semiconductor industry, leading to onshoring and workforce growth: New US export controls push semiconductor companies to onshore production and expand workforce due to geopolitical tensions and regulatory changes, while India fines Google $113 million for dominance abuse and allows third-party payment services on the Play Store, marking a shift in the market.
The semiconductor industry is facing significant disruptions due to new export controls imposed by the US government, leading to a push for onshoring and increasing the workforce. Meanwhile, international regulations continue to impact tech companies, as seen in India's $113 million fine against Google for abusing its dominant position in the Play Store. Developers will now be allowed to use third-party payment services, marking a shift in the market and potentially setting a precedent for other platforms. These regulatory changes and geopolitical tensions underscore the complex and evolving landscape for tech companies in an increasingly interconnected and regulated global economy.
Google, Apple crack down on anti-competitive practices and digital goods within their ecosystems: Google faces investigation in India for requiring pre-installation and prominent placement of its apps, while Apple introduces new rules limiting NFT features and mandating use of Apple's payment method, sparking backlash from developers and users.
Both Google and Apple have recently made moves to regulate the use of certain features, specifically related to anti-competitive practices and digital goods like NFTs, within their respective ecosystems. Google faced an investigation in India over allegations of requiring pre-installation and prominent placement of its apps on devices. Apple, on the other hand, introduced new rules in its App Store with iOS 16.1, limiting features that are unlocked through NFTs and mandating the use of Apple's payment method for social media post boosts. This move could potentially shut down a workaround for Apple's app store fees and has received backlash from developers and users. These actions highlight the ongoing tension between these tech giants and the developers and users within their ecosystems.
Apple's move to allow NFTs on App Store and reduce fees for small developers: Apple's decision to allow NFTs and reduce fees for small developers on the App Store is being criticized as arbitrary and not addressing the core issue of the 30% tax on in-app purchases. The disagreement between Apple and developers, including Spotify and Epic Games, continues to limit the potential growth of the NFT market on the App Store.
Apple's ongoing dispute with Epic Games and Spotify over app store fees and competition continues, with Apple recently reducing fees for small developers to 15% and allowing NFTs on the App Store. However, this move has been criticized as arbitrary and not leveling the playing field, with Spotify and Epic Games arguing that it does not address the core issue of Apple's 30% tax on most in-app purchases. The contrast between Apple's stance and India's recent decision to allow Google Play Store to bypass Apple's payment system adds to the complexity of the situation. While NFTs are now subject to the same rules as other apps, the ongoing disagreement between Apple and developers could limit the potential growth of the NFT market on the App Store. The future of this situation remains uncertain, and it will be interesting to see how it unfolds and what impact it may have on the tech industry as a whole.
