artist-compensation

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A startup attempted to build a licensed AI image generation marketplace (Tess.Design) that paid artists 50% royalties for fine-tuned models, but shut down after 20 months having generated only $12K in revenue against $18K in artist advances. The failure was driven by unresolved AI copyright litigation, lack of enterprise adoption due to legal uncertainty, and cultural hostility toward AI in the artist community.

Tess.Design Kapwing Stable Diffusion DALL-E Midjourney Fenwick Rolling Stone Fortune Creative Bloq Forbes SF Standard
kapwing.com · jenthoven · 4 days ago · details · hn