Photobucket, once the leading image-hosting site in the early 2000s, has seen a significant decline in users over the years. However, the company may now have a new lease on life as it explores licensing its vast collection of 13 billion photos and videos for generative AI model training.
CEO Ted Leonard revealed that Photobucket is currently in talks with multiple tech companies regarding the licensing of its extensive content. Generative AI models rely on large datasets to learn and generate new content in response to text prompts. The potential deals discussed have ranged from 5 cents to $1 per photo and over $1 per video, with prices varying depending on the buyer’s requirements.
While Photobucket has not disclosed the identities of its prospective buyers due to commercial confidentiality, these negotiations shed light on the emerging data market surrounding generative AI technology. Tech giants such as Google, Meta, and Microsoft-backed OpenAI initially relied on scraping data from the internet for free to train their AI models. However, they now find themselves exploring paid alternatives, including licensing content locked behind paywalls and login screens.
Law firm Klaris Law stated that it has been advising content owners on licensing deals worth tens of millions of dollars, enabling companies to license archives of photos, movies, and books for AI training. This hidden trade in data has given rise to concerns about personal data being used in AI models without individuals’ knowledge or explicit consent, prompting discussions around data privacy and ethics.
The opaque AI data market has not been extensively studied, but estimates suggest it is currently valued at around $2.5 billion and could grow to nearly $30 billion within a decade. As the demand for generative AI models increases, companies are seeking to secure their data-supply chains. They are entering into agreements with content owners, such as stock image providers like Shutterstock, to access their vast archives of images, videos, and music files.
In addition to established players like Shutterstock, smaller tech companies are also striking similar licensing agreements to secure the necessary data for AI training. This trend has led to the emergence of dedicated AI data firms that specialize in sourcing content, whether through licensing agreements or custom production with the help of short-term contract workers.
As the AI industry evolves, the focus on “ethically sourced” content becomes crucial. While companies navigate complex data deals, they must also address concerns related to copyright infringement and privacy violations. The growth of the AI data market provides an opportunity for content owners to monetize their collections, but it also highlights the need for increased transparency and safeguards to protect individuals’ data rights.
FAQ
1. What is generative AI?
Generative AI refers to a branch of artificial intelligence that uses large datasets to learn and generate new content in response to text prompts. It relies on training models to understand patterns and generate unique outputs.
2. How does Photobucket plan to use its content for generative AI?
Photobucket is in talks with tech companies to license its extensive collection of photos and videos. These assets will be used to train generative AI models, enabling them to produce new content based on text prompts.
3. What are the concerns surrounding the use of personal data in AI models?
The use of personal data in AI models without explicit consent raises privacy concerns. There is a need to ensure that personal data is obtained and used ethically, with proper safeguards in place to protect individuals’ rights.
4. What is the size of the AI data market?
The AI data market is still an emerging field, and its exact size is challenging to estimate. However, some researchers suggest it is currently valued at around $2.5 billion and could grow to nearly $30 billion within a decade.
5. How are companies securing their data-supply chains for AI training?
Companies are entering into licensing agreements with content owners to access their archives of images, videos, and other relevant data. Additionally, the emergence of dedicated AI data firms helps in sourcing content and ensuring the ethical use of data.
Sources:
– Reuters
Photobucket, the once-popular image-hosting site, is exploring new opportunities by licensing its vast collection of photos and videos for generative AI model training. The company is currently in talks with multiple tech companies regarding the licensing of its extensive content. Generative AI models require large datasets to learn and generate new content in response to text prompts. The potential deals being discussed range from 5 cents to $1 per photo and over $1 per video, with prices varying based on the buyer’s requirements.
The emerging data market surrounding generative AI technology is shedding light on the changing landscape of data acquisition. Previously, tech giants like Google, Meta, and Microsoft-backed OpenAI relied on scraping data from the internet for free to train their AI models. However, they are now exploring paid alternatives, including licensing content that is locked behind paywalls and login screens. This trend has given rise to concerns about personal data being used in AI models without individuals’ knowledge or explicit consent, prompting discussions around data privacy and ethics.
The value of the opaque AI data market is estimated to be around $2.5 billion, and it is expected to grow to nearly $30 billion within a decade. As the demand for generative AI models increases, companies are seeking to secure their data-supply chains. They are entering into agreements with content owners, such as stock image providers like Shutterstock, to access their extensive archives of images, videos, and music files.
In addition to established players like Shutterstock, smaller tech companies are also striking licensing agreements to secure the necessary data for AI training. This trend has led to the emergence of dedicated AI data firms that specialize in sourcing content, either through licensing agreements or custom production with the help of short-term contract workers.
As the AI industry evolves, the focus on “ethically sourced” content becomes crucial. While companies navigate complex data deals, they must also address concerns related to copyright infringement and privacy violations. The growth of the AI data market provides an opportunity for content owners to monetize their collections, but it also highlights the need for increased transparency and safeguards to protect individuals’ data rights.
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