GoPro announced that the launch of its new AI pilot program was a success.
The company has a significant amount of video data that it can monetize and is offering to split the proceeds with the customers who uploaded it.
Shares of GoPro Inc. (NASDAQ: GPRO) jumped on Tuesday, finishing the day up 9.1%. The spike came as the S&P 500 and the Nasdaq Composite both gained 0.4%.
GoPro, the maker of compact action cameras, announced that the launch of its new artificial intelligence (AI) pilot program was extremely successful in its first two weeks.
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GoPro announced today that its subscribers uploaded more than 125,000 hours of footage to its new AI data licensing effort in roughly two weeks. The trial began with a small, invitation-only group of U.S. members, with a broader rollout and potential international expansion planned.
Participants can allow the content they have stored in GoPro's cloud to be used to train third-party AI models and receive 50% of any licensing revenue the company receives. With 2.45 million subscribers and 13 million hours of content stored, GoPro has a sizable library to monetize.
Image source: Getty Images.
The successful launch of the program will help cement the company's meme stock status. Like Opendoor stock, which has seen a wave of retail enthusiasm based on the idea that the company can use AI to leverage its substantial data, some investors see GoPro as sitting on a gold mine of video content, highly prized in training AI models.
Though this program looks like it could be a success, I don't think it's enough for GoPro in the long run. The company's main product is one that can only find a niche market, and that market is oversaturated with similar products from larger companies. I would still stay away from GoPro stock.
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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.