In Short:
– OpenAI updated Sora AI’s copyright policy, giving rights holders more control and implementing revenue sharing.
– Following criticism, Disney excluded its content, while users quickly embraced Sora, leading it to the top of the App Store.

OpenAI has modified its copyright policy for the Sora AI video app, responding to concerns from the entertainment industry.

The updated policy will grant rights holders greater control over how their characters are utilised. The company also plans to share revenue with those who allow their characters to be used in the app.Only days after Sora’s launch, Hollywood expressed significant criticism regarding its initial “opt-out” policy for copyright infringement. OpenAI CEO Sam Altman acknowledged the feedback and indicated that the changes would enhance rights holders’ ability to manage their intellectual property better.

Disney opted to exclude its content from the app following the initial backlash. Talent agency WME has communicated a strong need for protective measures for their clients as AI technology evolves and the potential for intellectual property infringement increases.

Users rapidly populated the app with videos featuring various copyrighted characters. Despite the criticism, Sora quickly reached the top of the iOS App Store.

Revenue Sharing

OpenAI announced a revenue-sharing initiative for content owners who enable their characters to be featured. Altman noted the unexpected volume of videos generated per user, indicating a need to share some revenue with rights holders.

Although the plan requires further refinement, implementation will commence shortly as the company explores diverse approaches within Sora.

The adjustment signifies a strategic shift for OpenAI amid rising scrutiny regarding AI-generated content and copyright laws as it navigates various legal challenges.

In Short:
– OpenAI’s $6.6 billion share sale allows employees to sell stock at a $500 billion valuation, up from $300 billion.
– The sale supports employee retention amid intense competition for AI talent without pursuing an IPO.

OpenAI has concluded a secondary share sale amounting to $6.6 billion, enabling current and former employees to sell stock at a valuation of $500 billion, as reported by Bloomberg.This valuation represents a significant increase from $300 billion earlier this year, indicating strong investor interest.

Reports indicate that OpenAI had initially authorised up to $10.3 billion for the share sale, although only about two-thirds of this was executed.

The offer was made to eligible employees who had held their shares for over two years, with participation starting in early September.

The recent share sale is OpenAI’s second significant tender offer in less than a year, following a $1.5 billion deal with SoftBank in November.

This transaction solidifies OpenAI’s position as the most valuable privately held company globally, surpassing SpaceX’s valuation of $456 billion.

Talent Competition

Intensified competition for AI talent has emerged, with companies like Meta reportedly offering substantial compensation packages to attract top researchers.

OpenAI is part of a trend among startups, including SpaceX, Stripe, and Databricks, utilising secondary sales to allow employee cash-outs while remaining private.

This strategy aims to retain talent and reward long-serving employees without pursuing an IPO.