San Francisco-based startup Story announced on Wednesday that it has secured $80 million in Series B funding to advance its blockchain technology aimed at protecting creators’ intellectual property (IP) from unauthorized use by artificial intelligence (AI) systems. This funding round, which values the company at $2.25 billion, was led by venture capital firm Andreessen Horowitz (a16z), with additional investments from Polychain Capital and Brevan Howard, the investment fund of British billionaire Alan Howard.
Story’s blockchain platform is designed to help creators establish and manage ownership of their IP by storing it on an immutable ledger. This technology allows creators to embed licensing terms, royalty-sharing arrangements, and other IP management features into smart contracts—self-executing contracts with the terms of the agreement directly written into code. According to Story’s co-founder and CEO, SY Lee, this approach simplifies the process of IP management, eliminating the need for intermediaries like lawyers and agents.
The company’s technology is particularly relevant in the current landscape where powerful generative AI models, such as OpenAI’s ChatGPT, require extensive training data, often sourced from copyrighted materials without proper authorization. This has led to disputes over IP rights, exemplified by a recent lawsuit from The New York Times against Microsoft and OpenAI, alleging misuse of its content.
Story aims to address these concerns by ensuring that IP rights are clearly defined and enforced through its blockchain system. The company charges a network fee for transactions on its platform, which is used to support its infrastructure and operations.
Founded in 2022, Story plans to use the new funding to expand its IP network and attract more developer partners. With over 200 developers already utilizing its platform, Story is poised to play a significant role in the evolving digital landscape, ensuring creators are fairly compensated for their work amidst the rapid growth of AI technologies.
