Startup Story Secures $80M to Protect Creators from AI Copyright Theft Using Blockchain.

San Francisco-based startup Story is making waves in the tech world with its innovative approach to preventing copyright theft by artificial intelligence (AI). The two-year-old company recently raised $80 million in a Series B funding round, boosting its valuation to an impressive $2.25 billion. Led by venture capital giant Andreessen Horowitz (a16z) and crypto-focused firm Polychain, this funding round highlights the growing interest in solutions that protect creators' intellectual property (IP) in the age of AI.

Story’s mission is clear: to safeguard creators' IP from being exploited by AI models like OpenAI’s ChatGPT without proper permission or compensation. AI platforms often rely on vast amounts of data, some of which may be copyrighted, to train their models. This has led to increasing concerns about how these platforms use—and sometimes misuse—creators' works.

To combat this, Story uses blockchain technology to create an immutable record of IP ownership. By storing IP on its blockchain network, Story enables creators to prove their ownership and embed licensing terms and royalty-sharing agreements directly into smart contracts. These digital contracts automatically execute when certain conditions are met, streamlining the process of managing and monetizing IP. As Story’s co-founder and CEO SY Lee puts it, this technology turns IP into “IP Lego,” making it easier for creators to protect and profit from their work without needing to navigate complex legal processes.

Story is already making a difference in the fashion industry. For example, the AI tool Ablo uses Story’s platform to allow users to create custom fashion items featuring designs from top brands like Balmain and Dolce & Gabbana. Thanks to Story’s blockchain network, these brands are compensated through licensing and revenue-sharing agreements, ensuring that their IP is used fairly.

However, Story’s ambitions go beyond fashion. The startup is taking on a timely challenge: the widespread theft of copyrighted media by generative AI models. These models, which power popular AI chatbots and search engines, often rely on copyrighted content for training purposes. This has sparked legal battles, such as The New York Times’ lawsuit against Microsoft and OpenAI, where the newspaper accused the tech giants of using its content without permission.

Lee believes that while AI needs high-quality IP to thrive, failing to compensate creators could have dire consequences for the industry’s future. “Without great human-created data, AI models are not going to be able to train themselves and improve,” Lee said. Story aims to ensure that creators are fairly compensated, which Lee argues is essential for sustainable growth in AI.

Story plans to use the fresh funding to expand its IP network infrastructure and onboard more developer partners. With over 200 developers already using its platform, the company is well-positioned to lead the charge in protecting creators’ rights in the digital age.

Sourced from CNBC.