Why is Getty Images stock rocketing 120% today?

Getty Images has entered into a “display agreement” with OpenAI, marking a significant step toward integrating licensed visual content into artificial intelligence-driven search experiences.

In a brief announcement on Sunday, Getty said its licensed image libraries will appear in “OpenAI search and discovery experiences within ChatGPT.”

The agreement is expected to allow ChatGPT to use Getty’s images in generating visual responses.

However, the companies have not clarified whether the AI system will be permitted to modify or alter these images in any way.

Getty also did not disclose the financial terms of the deal.

It remains unclear whether OpenAI will be allowed to use Getty’s image libraries to train its generative AI models.

Scope of image usage and contributor rights still unclear

Several critical details of the partnership remain unresolved.

The announcement did not specify whether all content submitted to Getty Images, including both editorial and stock photography, would fall under the agreement.

It is also unclear whether individual photographers and content contributors will be given the option to opt out of having their work included in the AI-related use cases covered by the deal.

Getty Images CEO Craig Peters said, “High-quality, licensed visual content makes AI-powered search and discovery more useful and more trustworthy. This partnership with OpenAI reflects a shared recognition of that, and together we will deliver richer visual experiences to ChatGPT users.”

The statement highlights Getty’s positioning of licensed content as a foundation for more reliable AI-generated visual outputs, although operational details remain limited.

Stock surges sharply following announcement

Market reaction to the announcement was immediate and highly volatile.

Early on Monday, Getty Images shares briefly surged more than 200% before giving up some of those gains later in the session.

The stock ultimately closed at $1.35 per share, marking a 123% increase from Friday’s closing price.

The move comes after a prolonged period of weakness in Getty’s valuation.

The stock had declined about 55% earlier in the year, closing at 61 cents on Friday before the announcement.

From legal battles to licensing partnerships in the AI era

The agreement comes against the backdrop of Getty Images’ evolving relationship with artificial intelligence technology, which has included both legal disputes and licensing efforts.

In January 2023, Getty Images announced it was suing Stability AI, the creators of Stable Diffusion, alleging copyright infringement.

At the time, Getty said: “It is Getty Images’ position that Stability AI unlawfully copied and processed millions of images protected by copyright.”

Getty also noted its broader stance on AI, stating it believes the technology has the “potential to stimulate creative endeavors,” while also highlighting that it has provided “licenses to leading technology innovators for purposes related to training artificial intelligence systems.”

The company had previously expressed resistance to generative AI image tools and explored its own AI image generation capabilities.

Concerns over watermark replication in AI-generated outputs were among the issues that contributed to its legal action against Stability AI.

Growing trend of AI licensing across the media industry

The OpenAI partnership reflects a wider shift in the media and technology landscape, where AI developers are increasingly entering licensing agreements with publishers and content platforms.

OpenAI has been expanding its network of media partnerships as it develops new features across ChatGPT, including tools for visual content generation and advertising-related applications.

Despite the deal, significant uncertainty remains regarding how Getty’s licensed content will be used within AI systems, particularly in relation to training data usage and image manipulation permissions.

Further clarity is expected as implementation details of the agreement are revealed in the coming period.