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Nvidia Caught Taking AI Data from Netflix and YouTube

Morrissey Technology – According to a report from 404 Media, Nvidia has used videos from YouTube, Netflix and other sources to build an AI model. Nvidia says its AI training methods are fully compliant with content and copyright laws. However, there is no definitive verdict on whether using an artist’s work to train an AI model is legal or not.

This particular model has not yet been released by Nvidia, but internally the AI ​​model is called Cosmos and will be the foundation model for advanced video that can power various products such as world generators and digital humans. 404 Media obtained Slack messages showing Nvidia employees using a YouTube video downloader to grab content while discussing the legal and ethical considerations of the practice.

“We respect the rights of all content creators and believe that our models and research efforts fully comply with the letter and spirit of copyright law,” an Nvidia spokesperson told 404.

“Copyright law protects certain expressions, but it does not protect facts, ideas, data, or information. Anyone is free to learn facts, ideas, data, or information from other sources and use them to create their own expressions. Fair use also protects the ability to use a creation for transformative purposes, such as model training,” he continued.

However, YouTube views this practice as a violation of its policies, while Netflix also says that scraping is against its terms of service. According to the leak, Nvidia downloaded 100,000 videos from YouTube in just two weeks and collected more than 38.5 million video URLs. These links include content creators such as Marques Brownlee and the Architectural Digest channel. The documents also show that Nvidia trained its models on a dataset called HD-VG-130M that contains 130 million YouTube videos and is explicitly for academic research only. This leak makes it clear that Nvidia’s work is for commercial gain. When an employee raised legal and ethical concerns, Ming-Yu Liu, Nvidia’s Vice President of Research and leader of the Cosmos project, told them that the decision to obtain data this way had been made at the top of the company.

Nvidia has grown into a trillion-dollar company thanks to its computer chips that are the foundation for the booming AI market. OpenAI, Microsoft, Meta, and Google are Nvidia customers and rely on its graphics processing units (GPUs). However, Nvidia does more than just hardware. Last week, Getty Images announced a deepening of its relationship with the company after releasing an updated AI image model based on the Nvidia Picasso model architecture.

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Netflix
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Netflix is ​​Getting Richer Because it is Fierce About Users Sharing Passwords

Morrissey Technology – Netflix’s strict rules preventing password sharing are indeed unpleasant for users. But for the streaming giant, this risky move made him rich. In the first three months of 2024, Netflix added 9.3 million new subscribers, bringing its total subscriber base to nearly 270 million.

And with an increasing customer base and increasing subscription prices, this has given the company a quarterly profit of more than USD 2.3 billion (Rp. 37 trillion) up from USD 1.3 billion (Rp. 21 trillion) in 2023. Despite the price increase, Netflix revealed that year-on-year subscriber growth was the highest in the last 12 months. In the first three months of this year, customer growth rose to 16% compared to last year’s figure of 4.9%.

Prevent Password Sharing

Much of this growth is likely due to Netflix’s recent crackdown on preventing users from sharing passwords. For your information, many Netflix users enjoy the service using other people’s accounts. After investors were shocked by Netflix’s reported net loss in 2020, the company implemented a paid share system. Instead of sharing accounts with friends, home users now have to pay a fee to allow other people to use their accounts.

By looking at the IP address and location of the device, Netflix checks whether the user is part of the household paying for the account. If the service detects what it believes to be password sharing, the device will be blocked and the user will be given the option to create their own account. Initially, as quoted by the Daily Mail, Netflix’s firm steps were considered a gamble by some people because customers might not be happy and run away. However, this decision seems to have yielded sweet results for Netflix FOR4D.

At the end of last year, Netflix added 13 million new subscribers, bringing the total to 260.28 million. However, Netflix actually attributes its success to the increase in quality drama content that attracts audience interest. Netflix said its biggest successes include Society of the Snow with 98.5 million views, Fool Me Once with 98.2 million views, and Griselda with 66.4 million views. Currently, Netflix maintains its top position as the most popular streaming service in the world, ahead of Amazon Prime Video which has 220 million subscribers globally.

This growth occurred because Netflix has made several changes in determining its subscription prices. In Indonesia, Netflix subscription prices currently start from IDR 65 thousand per month for the Basic package, IDR 120 thousand per month for the Standard package, and IDR 186 thousand per month for the Premium package.

Investors Are Worried

Apparently this will be the last time Netflix provides information about the growth of its subscriber numbers. Netflix announced it will stop reporting subscriber numbers starting in the first quarter of 2025.

“In our early days, when we had little revenue or profits, membership growth was a strong indicator of our future potential. But now we are generating enormous profits and free cash flow,” Netflix said.

As an explanation for the decision, they also mentioned new sources of income, which include the addition of paid sharing accounts and different subscription levels. This report also states that Netflix is ​​enriching its content so that it becomes more varied, including expanding in areas such as games and sports. This decision, according to Netflix, has succeeded in attracting old customers and attracting new customers.

On the other hand, the announcement raised concerns among investors who saw it as a sign that subscriber growth might slow. Investors seem to be looking at the parent company of Facebook, Meta, and X/Twitter FOR4D. Both stopped reporting subscriber figures as their growth slowed.

“The decision to no longer disclose quarterly subscriber growth from next year will not go over well,” said technology and media analyst Paolo Pescatore of PP Foresight.

“The next quarter may be challenging due to seasonal factors that typically underperform compared to other regions as people spend more time outdoors,” he predicted.

Immediately following the announcement, Netflix’s share price fell nearly 5%. However, the share price is still up 30% since the start of the year, approaching its 2021 peak.