GoPro Shares Jump 9% on AI Video Licensing Venture
Company's new program to monetize user content for training AI models shows strong initial adoption, signaling a potential new revenue stream.
Shares of GoPro, Inc. (NASDAQ: GPRO) surged 9.1% on Tuesday following the announcement of strong early results from its new artificial intelligence (AI) data licensing program. The initiative, which allows GoPro subscribers to license their video footage for training third-party AI models, is being closely watched by investors as a potentially lucrative new revenue stream for the action-camera maker.
In just over two weeks since its launch, the program has seen subscribers opt-in over 125,000 hours of video content. The program, which began with an invitation-only group of U.S. subscribers, offers a 50% share of the licensing revenue to the content creators. GoPro has a substantial library to draw from, with 2.45 million subscribers who have stored over 13 million hours of content on the company's cloud platform.
"We're encouraged by the initial opt-in response rate for our AI training program," said Nicholas Woodman, GoPro's founder and CEO. "The engagement we've seen reinforces our belief that this program has the potential to be meaningful over time — for both our subscribers and for GoPro."
The move has bolstered GoPro's status as a "meme stock," with some retail investors betting that the company's vast repository of real-world video data could become a valuable asset in the burgeoning AI industry. The demand for high-quality video content to train AI models has been on the rise, and GoPro is in active discussions with several potential AI data licensees.
While the new program has generated excitement, some analysts remain cautious about the company's long-term prospects. They point to GoPro's core business in the niche and competitive action-camera market as a potential headwind. However, the successful launch of the AI licensing program suggests a strategic pivot towards data monetization that could diversify the company's revenue and unlock new growth opportunities. The broader rollout of the program to all U.S. subscribers, with potential international expansion, will be a key development to watch in the coming months.