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This Week in Startups

Why Medium is HIDING from AI | E2179

69 min episode · 2 min read
·
Tony Stubblebein

Episode

69 min

Read time

2 min

Topics

Leadership, Sales & Revenue, Artificial Intelligence

AI-Generated Summary

Key Takeaways

  • RSL Coalition Strategy: Medium joins Reddit, Yahoo and others under RSL standard to create credible force against AI companies through mass blocking capabilities, requiring unified Internet protocols rather than vendor lock-in solutions like Cloudflare's paper crawl to negotiate fair compensation.
  • Content Poisoning Leverage: Medium discovered it can poison AI training data by automatically inserting slander or slang into crawler results, proven by em-dash prevalence in language models originating from Medium's editor feature, giving negotiating power beyond legal threats alone.
  • Revenue Pass-Through Model: Medium commits to passing all AI licensing revenue directly to writers minus legal costs, making it the only platform prioritizing creator compensation over corporate profit in AI content deals, requiring negotiations to establish meaningful per-story payment thresholds.
  • Traffic Conversion Economics: ChatGPT referrals convert to Medium paid memberships at four times normal traffic rates due to higher intent readers seeking deeper content, but total volume remains dramatically lower, creating net negative revenue despite better conversion quality.
  • Per-Page Control Implementation: Medium modified RSL standard to enable individual writer opt-in/opt-out decisions rather than site-wide blocking, recognizing moral opposition among creators while maintaining negotiating leverage through granular access controls unavailable in competing solutions.

What It Covers

Medium CEO Tony Stubblebine explains Really Simple Licensing (RSL), a coalition approach to force AI companies to pay content creators for training data and search results, addressing the broken social contract of value exchange.

Key Questions Answered

  • RSL Coalition Strategy: Medium joins Reddit, Yahoo and others under RSL standard to create credible force against AI companies through mass blocking capabilities, requiring unified Internet protocols rather than vendor lock-in solutions like Cloudflare's paper crawl to negotiate fair compensation.
  • Content Poisoning Leverage: Medium discovered it can poison AI training data by automatically inserting slander or slang into crawler results, proven by em-dash prevalence in language models originating from Medium's editor feature, giving negotiating power beyond legal threats alone.
  • Revenue Pass-Through Model: Medium commits to passing all AI licensing revenue directly to writers minus legal costs, making it the only platform prioritizing creator compensation over corporate profit in AI content deals, requiring negotiations to establish meaningful per-story payment thresholds.
  • Traffic Conversion Economics: ChatGPT referrals convert to Medium paid memberships at four times normal traffic rates due to higher intent readers seeking deeper content, but total volume remains dramatically lower, creating net negative revenue despite better conversion quality.
  • Per-Page Control Implementation: Medium modified RSL standard to enable individual writer opt-in/opt-out decisions rather than site-wide blocking, recognizing moral opposition among creators while maintaining negotiating leverage through granular access controls unavailable in competing solutions.

Notable Moment

Medium's founder inadvertently trained AI models on em-dash usage through an automatic text editor feature that became culturally embedded in online writing, demonstrating how a single platform's design choices can influence language model outputs at scale.

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Episode Transcript

We are not going to make any change unless an AI company comes to the table with money, right? Like, I didn't want to do this, not in a way that wasn't transparent to our community. And, but now that it's out, we can literally start having these conversations. And the conversations kind of don't make sense until you have a number, right? Are we saying we're going to pay every story 1p? No one's going to care, right? Is it $5 Well, some people are going to start to care. Is it the best stories that show up in AI results over and over again? Are they going to make $100 $1,000 Oh, that's going to catch people's attention. And so, know, we have to start the negotiation to where to see where it goes. This Week in Startups is brought to you by Dev Stats. Check out Dev Stats today and get 20% off plus access to their dedicated Slack channel. Just go to devstats.com/twist. Gusto. Check out the online payroll and benefits experts with software built specifically for small businesses and startups. Try Gusto today and get three months free at gusto.com/twist. And Nexos dot AI, stop shadow AI in its tracks with the unified platform for secure AI adoption and productivity. Try it with a free fourteen day trial at nexos.ai/twist. That's nexos.ai/twist. Hey, everybody. Welcome back to This Week in Startups. This is Alex. And today on the show, I have three amazing Twist 500 companies coming your way. First up, we are gonna talk to Medium CEO Tony Stubblebein. Now if you're a long term listener on the show, you know we've had Tony on before. So why now? Well, just last week, Medium, along with other companies like Yahoo and Reddit, all joined together under a new initiative called RSL or Really Simple Licensing. Think of it as the RSS for the monetization of media in the generative AI era, if you will. I'm curious about why he picked this project back and why now. Then after that, we're gonna talk to Human Native. Now this is a Twist 500 start up that I added originally to the list because they were building an awesome AI content marketplace. Essentially, publishers and AI companies would meet in the middle under the startup's auspices and find a way to make a deal. Well, turns out they're pivoting a little bit. I learned a ton in this chat about the pitfalls, you might say, and the potential in monetizing IP in the generative AI moment. Then to wrap up our show today, we're gonna talk to the CEO of Tello Trucks. Now if you recall Slate, the, Jeff Bezos backed small EV truck company, this is like that but cute and also pretty far down the road. So if you care about EVs, you care about transport, well, a teller trucks is an absolute treat, and I want one. But no more for me right now. …

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Tools

  • Sponsor: Gusto (https://gusto.com/twist)
  • Sponsor: Nexos.AI (https://nexos.ai/twist)
  • Medium CEO Tony Stubblebine explains Really Simple Licensing (RSL), a coalition approach to force AI companies to pay content creators for training data and search results
  • by Cloudflare

    requiring unified Internet protocols rather than vendor lock-in solutions like Cloudflare's paper crawl to negotiate fair compensation
  • by OpenAI

    ChatGPT referrals convert to Medium paid memberships at four times normal traffic rates due to higher intent readers seeking deeper content
  • Sponsor: Dev Stats (https://devstats.com/twist)

company

  • MediumBy guest
    Medium joins Reddit, Yahoo and others under RSL standard to create credible force against AI companies through mass blocking capabilities
  • Medium joins Reddit, Yahoo and others under RSL standard to create credible force against AI companies
  • Medium joins Reddit, Yahoo and others under RSL standard to create credible force against AI companies

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