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If OpenAI has exclusive rights to AI generation for Disney and other IP rights holders, that would create the kind of moat they've been missing so far.
by jimbokun 11mo ago
If OpenAI has exclusive rights to AI generation for Disney and other IP rights holders, that would create the kind of moat they've been missing so far.
- afavour 11mo agoAll the more reason it's insane for Disney to be the one giving money!
- mritchie712 11mo ago> commoditized not for disney content. Disney can pick OpenAI as the winner for this by not signing deals and suing anyone else.
- deleted 11mo ago[deleted]
- raincole 11mo agoDisney is buying equity from OpenAI. You frame it as "giving OpenAI money" because you hold a (quite insane) assumption that OpenAI's equity is worth nothing.
- mcphage 11mo ago> Disney is buying equity from OpenAI. Can you buy equity from OpenAI without also giving OpenAI a license to use your IP? Even if the equity is worth $1 billion, how much is Disney's IP license worth?
- HaZeust 11mo ago>"how much is Disney's IP license worth" It unspoken business model is giving an IP license to anyone that can breathe at make a rev share agreement or hefty sum - so, less than you think.
- alephnerd 11mo agoThese kinds of equity deals tend to include MFN clauses around inference pricing. Ik Anthropic did something similar a couple years ago.
- Hamuko 11mo agoBut Sam Altman has already said that they need to be able to ignore copyright laws because the Chinese are going to ignore them too. How is access to Disney IP a moat if everyone involved (except Disney) gives no shits about copyright?
- jimbokun 11mo agoLooks like he changed his mind.
- herbturbo 11mo agoThats a business agreement not a moat. And you might have rights to generate the characters but they still need to do something. You only have to look at the repeated Disney flops to see they themselves have no ideas.
- jklinger410 11mo agoAnd if you're the only company with that business agreement. As long as you still have it, it's a...moat.
- herbturbo 11mo agoWell that’s the thing with moats - they don’t just disappear one day.
- alephnerd 11mo agoThese kinds of parternships also throw in free inference with MFN clauses, which make a mutual moat. A moat doesn't have to be a feature, and equity stakes have been fairly successful moats (eg. Much of AWS's ML services being powered by Anthropic models due to their equity stake in Anthropic).
- herbturbo 11mo agoA moat is a permanent feature protecting a castle against attack. That’s the metaphor. If it’s not their own device intrinsically protecting them then it’s not a moat in my book.
- alephnerd 11mo agoThat is not how we use the term "moat" in this context, because competitors eventually converge on offerings within 1-2 years. I don't need some stuck up HNer telling me about stuff I deal with in my day-to-day job. Edit: can't reply > a business deal that can be transferred to a new partner the second it expires is much more temporary Generally, these kinds of equity deals include an MFN clause.
- BeFlatXIII 11mo agoAs if that would stop folks from using competitors to make knockoff Disney content.