AI

The Music Industry Is Raging Against The Machine In The Most Important Fight of Their Lives

First, writers came for AI companies — alleging that they were committing copyright infringement. Then came the newspapers, voice actors, and coders. And now, the notoriously litigious music industry is shaping up to be the AI industry’s final boss.

Rightsholder showdown: The music industry has always had a tenuous relationship with tech. Think: Napster, Spotify, TikTok. Now, after a viral AI-generated Drake song, legacy music businesses are again sharpening their knives.

Sony Music ($SONY), Universal Music ($VIVHY), and Warner Records ($WMG) are suing Suno and Udio, two startups that allow users to generate convincing and high-quality AI music from text. The problem? Their AI models are trained on content they don’t own (insert Mira Murati frown).

• The labels and the Recording Industry Association of America (RIAA) want to “stop unlicensed use of copyright sound recordings” in AI training models.

• They’re seeking damages of $150K per infringing work, a move that could bankrupt the two genAI upstarts — and set a precedent for others.

The Day The (AI) Music Died

AI companies have exploited third-party content to build multi-billion-dollar businesses with complex AI models. OpenAI argues that this constitutes fair use, but if courts disagree, it could spell disaster for genAI startups.

• In January, Oxford’s Alex Connock warned that losing these suits could be “catastrophic for the entire AI industry,” opening the door to more litigation.

• As a result, many AI startups are now licensing content from companies and third parties — a hedge against the potential blunt impacts of copyright litigation.

It’s never over: While the industry’s lawsuit could destroy AI music startups, RIAA Chairman and CEO Mitch Glazer insists that “the music community has embraced AI” for its potential to enhance human creativity. He encourages developers to work with them to build it in a responsible and innovative way. That’s just another indication that even creatives initially skeptical of AI recognize its ability to repeatedly destroy and reinvent the music industry.

Read: AI Was Once Thought To Be The Disruptive, Transformative Technology Of Our Time, Now Investors Are Skeptical

PARTNERED WITH ENERGYX

The Lithium Boom

It takes 10,000 iPhone batteries worth of lithium to make 1 EV.

With 350M+ EV sales projected by 2030, lithium demand will soar – and current extraction methods can’t meet it. So when EnergyX revealed their technology extracts 300% more than traditional methods, investors everywhere took note.

They’ve secured a $50M strategic investment from GM, acquired a 90,000-acre Chilean mining asset with ~5.5M tons of lithium, and just announced Project Lonestar, a commercial US lithium plant supported by a $5M DOE grant.

EnergyX is currently accepting shareholders, and there’s still time to invest before the share price changes tonight at midnight PST in response to Project Lonestar.

Take advantage of EnergyX’s $9/share price while you can.

LARGECAP RECAP

🚗 Volkswagen Announces $5B Partnership With Struggling EV Maker Rivian

With its stock down nearly 90% since going public, investors have all but given up on Rivian ($RIVN) — the electric truck manufacturer that’s losing $39K per vehicle. Despite delivering over 100K vehicles and receiving backing from Amazon ($AMZN) and Ford ($F), Rivian still struggles to make ends meet. Now Volkswagen ($VWAPY), whose roof is also “on fire,” hopes a new partnership will provide a much-needed boost for both companies.

• This week, Volkswagen announced a significant investment of “up to $5B in Rivian” through a joint venture to leverage their combined resources.

• The news sent Rivian’s shares soaring over 19%, pushing its valuation to over $14B — its highest level in nearly four months.

Can two negatives create a positive? Both companies stand to benefit from this partnership. For Rivian, the capital and stability of its one-time competitor might be a financial saving grace — especially as it continues to lose double what it generates in revenue. And for Volkswagen, which is woefully behind the curve in EV and self-driving tech, a startup mindset might help power it into EV dominance… even if it takes some time to pay off.

Your last day to tap into a $600 billion market opportunity: Rootless is solving the hormonal imbalances caused by menopause. In the untapped $600 billion menopause market, their solution is proven to improve hormonal health in women, with sales exploding 251% in 2023 alone. Share in Rootless’s growth potential as an early investor. Don’t wait, this opportunity ends tomorrow.*

Markets & Economy

US auto sales to slow in H2 2024: Industry analyst Cox Automotive predicts a modest 1.3% YoY growth slowdown in auto sales for the latter half of 2024, potentially benefiting consumers. [Read]

IRS apologizes, settles Ken Griffin case: Citadel Securities owner Ken Griffin, villain of the GameStop short squeeze, settled with the Internal Revenue Service over leaked tax return info — prompting an IRS apology. [Read]

Yen hits 38-year low: Japan’s currency dropped to its lowest level since 1986 on Wednesday due to a new low-interest rate policy, increasing the likelihood of central bank intervention. [Read]

Business & Wealth

Mail-order prescriptions costing employers: They were supposed to save employers money, but now they’re costing them more instead. According to WSJ, mail orders are now driving up drug costs for companies and patients. [Read]

Rise of luxury gyms: High-end gyms are bigger, more expensive, and supposedly better than standard gyms — which is why affluent Americans are embracing luxury workouts at Equinox and New York Sports Club. [Read]

The New York Times ($NYT) launches new game: The publication, famous for games like “Wordle” and “Connections,” launched “Strands” on Wednesday as part of a trend in media and tech using games to engage customers — flanked by similar efforts by Netflix ($NFLX) and Microsoft’s ($MSFT) LinkedIn. [Read]

*Thanks to our sponsors for keeping the newsletter free.

DIGIT OF THE DAY

3.2M Americans Embrace Second Jobs, Led by Millennials Side Hustles

In today’s economy, relying on just one job isn’t cutting it anymore, especially for millennials who are increasingly freelancing for extra income. According to Revelio Labs, 3.2M Americans now supplement their main income with freelance work, representing a 60% surge since 2019, primarily driven by millennials aged 28 to 43.

• The top freelance side hustles among millennials include creative services like writing (13.5%), photography (12.8%), and graphic design (11%).

• The Bureau of Labor Statistics notes that nearly 8.4M Americans juggled multiple jobs in May — nearing a record high set in the ‘90s.

Double or nothing: Despite being in a job-rich market, many millennials burdened with student debt and increased living expenses since the aftermath of the 2008 financial crisis have been compelled to take on second jobs. This financial pressure extends beyond millennials, with 54% adding side hustles in the past year purely out of necessity rather than personal interest. With wages failing to keep pace with the rising cost of living, a secondary source of income has become essential for affording their American Dream.