The "Pay-Per-Click" Guy Takes on AI: Bill Gross’s audacious fight for fair use in the age of generative AI
Bill Gross, the tech visionary behind the revolutionary "pay-per-click" advertising model that fueled the rise of Google AdWords, is back. This time, he’s tackling the burgeoning world of generative AI with a bold new startup called ProRata, aiming to disrupt the industry’s rampant data-scraping practices and usher in a new era of "AI pay-per-use."
Gross is no stranger to disruption. In the 1990s, he developed the concept that would change the internet as we know it: paying advertisers only when users clicked on their ads. This simple yet powerful idea, now ubiquitous in online advertising, was initially met with skepticism but ultimately revolutionized how businesses connected with consumers online.
Now, Gross is again challenging conventional wisdom, this time by addressing a critical problem at the heart of generative AI: the widespread practice of "shoplifting" data from the internet. This practice, which involves AI companies scraping vast amounts of text, images, videos, and other content from websites and online repositories without proper attribution or compensation, has sparked a fierce debate over copyright infringement and fair use.
"It’s stealing," Gross asserts, arguing that AI companies are "laundering the world’s knowledge to their benefit." He dismisses the industry’s defense that data scraping is necessary for training cutting-edge AI models as "bullshit," echoing the concerns of countless artists, writers, musicians, media executives, and other content creators who have been caught in the crosshairs of this burgeoning technological revolution.
The battle over data ownership has escalated, with a flurry of copyright lawsuits filed against AI companies, accusing them of stealing intellectual property. Gross believes ProRata offers a more constructive solution: an AI ecosystem built on fair revenue-sharing.
ProRata’s mission is ambitious: to create a system where publishers and individuals get paid for their content whenever it’s used to train or generate output by AI models. "We can take the output of generative AI, whether it’s text or an image or music or a movie, and break it down into the components, to figure out where they came from, and then give a percentage attribution to each copyright holder, and then pay them accordingly," explains Gross. The company has developed proprietary algorithms, currently undergoing patent application, to perform this complex attribution process and ensure appropriate compensation.
In a pivotal move, ProRata has launched with a strong lineup of partners, including major media giants like Universal Music Group, the Financial Times, The Atlantic, and Axel Springer, as well as influential authors such as Tony Robbins, Neal Postman, and Scott Galloway. The company has also secured partnerships with high-profile figures like former White House communications director Anthony Scaramucci and journalism professor Jeff Jarvis, the latter even acknowledging the value of offering AI companies access to credible and current information.
ProRata’s launch has sparked significant interest, with numerous companies reaching out to explore potential partnerships. This includes Time CEO Jessica Sibley, who has already confirmed a deal with ProRata. Gross plans to further expand his reach by securing agreements with prominent YouTubers and other online stars, further solidifying ProRata’s position as a leader in the fight for fair use in the age of AI.
However, ProRata is still in its early stages, and its success hinges on its ability to deliver on its ambitious goals. As a proof of concept, the company is launching its own subscription-based search engine in October, powered exclusively by licensed data. Unlike other AI-powered search products that rely on scraped internet data, ProRata’s engine will be "nothing from Reddit," a clear statement of its commitment to ethical data practices.
ProRata’s approach represents a paradigm shift, moving away from the existing model of data extraction and toward a future where content creators are properly compensated for their work. This shift is crucial for fostering a sustainable and ethical AI ecosystem, where innovation flourishes without infringing on artists’ rights and intellectual property.
While ProRata’s success remains to be seen, its bold vision and the support it has garnered from prominent players in the media and technology industries suggest its potential to reshape the landscape of generative AI. Gross, the "pay-per-click" guy, is once again demonstrating his ability to anticipate and shape the future of technology, challenging the status quo and advocating for a fairer and more sustainable digital future.
