27% gain every 20 days?
This is what Nick Shine does on average with his options buying. Instead of selling covered calls or spreads, he buys options. Most traders don't even win 27% of their options buying. He wins 83%. This is how he does it.
Shutterstock Inc. Slack (NYSE: SSTK), known as a platform for images and videos, Reka AIis a startup specializing in large-scale language models. Financial terms were not disclosed.
As part of the partnership, Reka will license Shutterstock’s extensive library of digital visual assets and help develop cutting-edge multi-modal language AI models.
In addition to its ongoing investments in human-created metadata, Shutterstock plans to leverage Reka's multi-modal models to augment detail and improve the metadata attached to its digital asset library.
The company's licensing business with AI companies generated $104 million in revenue last year, CEO Paul J. Hennessy said in an interview, according to a Bloomberg report.
Meta Platforms, Inc. (NASDAQ:META), Alphabet Inc. (NASDAQ:GOOGL), Amazon.com Inc. (NASDAQ:AMZN), and Apple. According to Reuters, some of Shutterstock's major training data clients include NASDAQ:AAPL. Open AI He landed a six-year deal with Shutterstock.
Reka CEO “As we continue to develop cutting-edge multi-modal AI models, it was crucial for us to partner with Shutterstock, a comprehensive source of legally licensable content with best-in-class human-created metadata,” said Dani Yogatama.
AI models require huge datasets to power tools such as chatbots that generate text, video or audio in response to user requests.
However, AI companies' use of copyrighted material is under strict scrutiny. The middle of a journey, Open AIand Stability AI According to Bloomberg, several companies are facing lawsuits for using content from the internet to train their models.
See alsoHitachi and Microsoft bring multi-billion dollar AI collaboration to life: Learn more
This growing demand for data is creating new opportunities for Shutterstock, whose traditional business of licensing media to advertising and creative companies has declined.
Other companies are similarly making money by licensing data to AI companies, according to the report. For example, Reddit, Inc. (NYSE:RDDT) receives roughly $60 million in annual revenue from Google and has a contract with OpenAI.
Adobe Inc. Shutterstock competitor (NASDAQ:ADBE) is using the company's image library to develop its AI model, Firefly. Getty Images Holdings (NYSE:GETY) has inked a deal with AI video startup Runway.
In February, Shutterstock reported it had 771 million images, 54 million videos, 4 million audio tracks, and 1 million 3D figures.
Shutterstock expects its business division, which includes AI licensing, to generate $138 million in revenue in 2024, the same level as last year.
The firm predicts the segment will generate $250 million in revenue by 2027, and attributes the current stagnation to evolving contract structures rather than a lack of AI customers.
Price Action: SSTK shares were down 2.13% and trading at $38.70 as of last check on Tuesday.
Disclaimer: This content was produced in part with the help of AI tools and was reviewed and published by Benzinga editors.
Read next: French startup Mistral AI gains momentum in the US, targeting OpenAI's market
Photo by Shutterstock
27% gain every 20 days?
This is what Nick Shine does on average with his options buying. Instead of selling covered calls or spreads, he buys options. Most traders don't even win 27% of their options buying. He wins 83%. This is how he does it.
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