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Reading: The CEO of Patreon blasts AI firms for the ‘bogus excuse’ they’re utilizing to not pay artists | Fortune
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Asolica > Blog > Business > The CEO of Patreon blasts AI firms for the ‘bogus excuse’ they’re utilizing to not pay artists | Fortune
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The CEO of Patreon blasts AI firms for the ‘bogus excuse’ they’re utilizing to not pay artists | Fortune

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Last updated: March 20, 2026 2:07 am
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9 hours ago
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The CEO of Patreon blasts AI firms for the ‘bogus excuse’ they’re utilizing to not pay artists | Fortune
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Patreon’s CEO Jack Conte is uninterested in watching AI firms strike offers with big companies like Disney whereas ignoring the myriad of smaller creators who contribute to their fashions.

Talking on the South by Southwest convention this week, Conte, whose firm permits folks to pay their favourite creators straight, argued AI firms ought to view creators’ work in the identical method it views that of Disney, Conde Nast, or Warner Music, aiming to succeed in agreements with them slightly than use their content material with out permission.

For Conte, this authorized “fair use” loophole is utter quackery.

“The AI companies are claiming fair use, but this argument is bogus,” Conte stated throughout the convention. “It’s bogus because while they claim it’s fair to use the work of creators as training data, they do multimillion-dollar deals with rights holders and publishers like Disney, and Condé Nast, and Vox, and Warner Music.”

Up to now a number of years, AI firms like OpenAI have made waves for the offers they’ve struck with some content material homeowners whereas staving off lawsuits from others just like the New York Instances, which in 2023 accused OpenAI of coaching ChatGPT on hundreds of thousands of its articles with out permission.

Conte talked about these offers particularly to focus on the hypocrisy demonstrated by AI firms when deciding who will get a licensing settlement and who doesn’t. Smaller creators, he claims, are being unnoticed.

“If it’s legal to just use it, why pay?” Conte requested the gang. “Why pay them and not creators—not the millions of illustrators and musicians and writers—whose work has been consumed by these models to build hundreds of billions of dollars of value for these companies?”

A spokesperson for Patreon informed Fortune Conte’s feedback mirror the combination of pleasure and concern the corporate has heard from creators on how their work is getting used and valued within the age of AI.

“At Patreon, our focus is on ensuring creators can build sustainable businesses, and that includes advocating for a future where creators are recognized and compensated for the value they bring, even as technology evolves,” the spokesperson stated in a press release.

The AI firms’ honest use claims have been referred to as into query a number of occasions as AI fashions have turn out to be more and more extra common. The New York Instances filed a lawsuit in 2023 claiming OpenAI used hundreds of thousands of its articles with out permission and that its giant language mannequin ChatGPT was in some circumstances regurgitating whole Instances articles, probably putting a blow to OpenAI’s honest use argument. A date for the trial has not but been set, but when the Instances wins it could possibly be owed billions in damages. Extra just lately, dictionary makers Encyclopaedia Britannica and Merriam-Webster sued OpenAI after it rebuffed the businesses’ supply of a licensing settlement in 2024. The publishers claimed within the lawsuit that OpenAI’s ChatGPT is chopping into their search visitors and advert income by absorbing the content material created by their tons of of human writers and editors. 

OpenAI rival Anthropic additionally settled a category motion lawsuit by a gaggle of authors to the tune of $1.5 billion in September. On account of the case, the decide dominated that coaching an AI mannequin on pirated books—because the authors accused Anthropic of doing—didn’t qualify as “fair use,” however that coaching an AI mannequin on bought books certified as authorized transformative use.

Whereas Conte stated he was not in opposition to AI, typically, and famous that change is inevitable, people will proceed to get pleasure from human-created content material lengthy into the longer term, he stated.

“Still, the AI companies should pay creators for our work, not because the tech is bad—but because a lot of it is good, or it will be soon — and it’s going to be the future. And when we plan for humanity’s future, we should plan for society’s artists, too, not just for their sake, but for the sake of all of us. Societies that value and incentivize creativity are better for it,” he stated. 

March 19: This text has been up to date to incorporate feedback from a Patreon spokesperson

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