Story raises $80M for a blockchain based content IP

Prominent players in AI, such as Anthropic, OpenAI, and Stability AI, have come under fire for using stolen data and infringing on others' intellectual property while developing and using their core models. In an attempt to level the playing field, a firm named Story is putting up a $80 million investment round today. Its blockchain-based technology would enable IP owners to track usage more precisely. Building a more "sustainable" intellectual property environment suitable for the upcoming generation of digital consumers and creators is the goal, according to CEO and co-founder S.Y. Lee. According to the business, its methodology is to employ blockchain technology to enable intellectual property (IP) to be thought of like Lego blocks.

The lead investor in the round is Andreessen Horowitz, specifically its a16z crypto division. Other participants include crypto investor Polychain Capital, Adrian Cheng, the founder of K11, Scott Trowbridge, the SVP of Stability AI, and Cozomo de' Medici, a digital art collector who adopted an alias to reference the well-known Renaissance family. With this Series B fundraising, Story and its parent company PIP Labs have raised a total of $143 million. For license holders, being able to more accurately realize the value of intellectual property when it is used could result in large financial gains.

While waiting for its platform to take off and function as planned, Story is also starting to realize some pretty substantial value. According to individuals close to the business, the startup's post-money valuation is currently $2.25 billion. Story is developing what it refers to as a "IP blockchain"—a platform and system that would enable content creators to claim ownership of their works, impose restrictions on their use, and then grant permission for others to license and utilize them.

Chris Dixon, who co-led a16z's investment alongside Carra Wu, thinks that new applications built on generative AI and related advancements will drastically upend the economic models that have historically supported the creation of literature, music, and visual art—or any other type of "content," as it's commonly referred to these days—into a digital format. The argument is that a new method of content monetization needs to be established in order to maintain the health of the creative market. Though they are only one application of content, AI systems are a big one, which is why there are other companies in this market than Story. Sahara AI, a different business, just revealed $43 million in funding.