Shutterstock shares jump on expanded partnership with OpenAI

Shutterstock Inc (NYSE: SSTK) ended nearly 10% up on Tuesday after announcing a new six-year deal with the company behind ChatGPT.

Details of the new partnership

Under the expanded agreement, the New York based company will grant OpenAI access to its library of videos, images, and music.

In return, it will continue to benefit from the AI startup’s text-to-image generation capabilities. In a press release, Paul Hennessy – the Chief Executive of Shutterstock said today:

The stock images firm is expected to earn 77 cents a share in its current financial quarter versus 68 cents per share a year ago. Shutterstock shares are still down more than 30% versus their year-to-date high.

Shutterstock to bring Gen AI to mobile users

Shutterstock and OpenAI also plan on bringing Gen AI to mobile users via Giphy – a database of GIFs that Shutterstock bought from Meta Platforms Inc for $53 million in May.

Customers of the stock photography company have had access to OpenAI powered image generation since October of 2022. According to Brad Lightcap – the COO of OpenAI:

Shutterstock had originally partnered with OpenAI in 2021. Note that it has also worked with the likes of LG and Nvidia on foundational Gen AI tools. Wall Street currently has a consensus “overweight” rating on Shutterstock shares.