Getty Images shares soared 143% following a deal with OpenAI
The photo bank is integrating its media library into ChatGPT's search functions
Getty Images shares soared 143% in premarket trading on Monday. Photo: Eric Broder Van Dyke/Shutterstock
Getty Images shares soared 143% in premarket trading on Monday, June 22, after the photo agency announced a licensing agreement with OpenAI, the developer of ChatGPT.
Under the agreement, images from the Getty Images library will be integrated into ChatGPT’s search functions. For the company itself, this move marks a radical shift in business strategy. The parties did not disclose the financial terms of the deal, nor did they reveal whether OpenAI will be granted the right to use Getty’s content to train its neural networks.
“High-quality licensed content makes AI-powered search more effective and reliable. Our partnership with OpenAI demonstrates that both companies fully understand this. Together, we will be able to offer ChatGPT users a whole new visual experience,” said Craig Peters, CEO of Getty Images.
What about the shares?
Prior to the surge on June 22, Getty Images’ stock price had fallen by about 55% since the start of the year, partly due to concerns that OpenAI and other artificial intelligence developers would poach the company’s clients.
AI is capable of generating realistic images, and the companies behind these tools have repeatedly clashed with photographers and content creators whose work was used to train the technology, Bloomberg notes. For a while, Getty resisted: it tried to develop its own AI image generator and sued Stability AI, the developer of another popular tool.
It is noteworthy that over the past three months, insiders have sold Getty Images shares worth approximately $0.4 million, while no purchases by them have been recorded, according to Guru Focus. This may indicate a lack of confidence on the part of management regarding the company’s near-term prospects, the publication believes.
Given all these signals, investors should approach Getty Images with caution, Guru Focus notes. Although the partnership with OpenAI opens up potential opportunities for growth, the company’s financial metrics point to underlying vulnerabilities that could affect its long-term stability, the publication adds.
According to MarketWatch, only one analyst recommends buying Getty shares. Two others have adopted a wait-and-see approach and recommend holding the stock. No one recommends selling these shares.
This article was AI-translated and verified by a human editor
