One startup’s plan to fix AI’s “shoplifting” problem

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Bill Gross made his name in the tech world in the 1990s, when he came up with a novel way for search engines to make money on advertising. Under his pricing scheme, advertisers would pay when people clicked on their ads. Now, the “pay-per-click” guy has founded a startup called ProRata, which has an audacious, possibly pie-in-the-sky business model: “AI pay-per-use.”

Gross, who is CEO of the Pasadena, California, company, doesn’t mince words about the generative AI industry. “It’s stealing,” he says. “They’re shoplifting and laundering the world’s knowledge to their benefit.”

AI companies often argue that they need vast troves of data to create cutting-edge generative tools and that scraping data from the Internet, whether it’s text from websites, video or captions from YouTube, or books pilfered from pirate libraries, is legally allowed. Gross doesn’t buy that argument. “I think it’s bullshit,” he says.