🤯 Amazon hid evidence, Drake sued for AI song, xAI raising $6b, and The Creator Economy 2.0

The Creator Economy 2.0

The concept of the "creator economy" has rapidly evolved, giving rise to what some now refer to as "Creator Economy 2.0." This new phase represents a significant shift in how content creators engage with their audiences and monetize their efforts.

Creator Economy 2.0 transcends traditional platforms like YouTube and Instagram - focusing on direct monetization and community engagement. This new phase embraces subscription models (e.g. via Patreon, Substack, and Skool) - allowing creators to offer exclusive content for a fee, fostering deeper audience connections.

In his seminal essay, Andrew Chen posits that there are 3 underlying dynamics at play.

a. The creator power law: A small number of creators command the majority of the audience, which makes Creator Economy startups potentially fragile and dependent

b. Battle for the bio link: Creator economy firms acquire eyeballs from larger social media platforms that often just have one spot - the link in bio - to promote a single company.

c. The graduation problem: Companies often charge a take rate (% of bookings or revenue) - and if the creator is acquiring own their customers and also doing the underlying work, they want to pressure the creator towards reducing costs.

Additionally, creators are diversifying income through digital products like courses and merchandise. For instance, Mitkus earns around $30k monthly (after starting 3 years ago) by teaching others how to become digital content creators.

While Jade Bonacolta built up an audience of 370k followers in 12 months - while working full-time at Google.

This shift towards economic independence for creators enriches both their careers and audience experiences, marking a significant evolution in the digital content landscape.

Here’s how the creator economy actually works.

Content creators no longer fall within the typical category of influencers, well-toned bodies, hucksters, or viral entertainers (e.g. Mr Beast). They are the 16-year-old kid detailing his artistic journey, a middle-aged mom teaching baking and selling her products, and the aspiring tech entrepreneur building in public.

Anyone can become a creator - here are a few easy steps to get started. You can start small and start today: don’t hesitate to share your insights, learn in public, and engage with a global community of like-minded folks!

News & Trends 📢

1. Amazon accused of deleting evidence

   The FTC is accusing Amazon of using Signal's auto-deleting messages to hide antitrust-related communications. Executives, including Jeff Bezos, allegedly continued this practice despite being under investigation. The FTC is seeking a court order to compel document disclosure​. The issue of deleting message history is not unprecedented - the DOJ accused Google executives of deleting chat history evidence
   

2. 3 cheap tech stocks to buy right now

   

   
   

3. The world’s largest 3d printer can print a home in under 80 hours

    
   

4. Why is everyone in tech making friends with Saudi Arabia?
   The Kingdom of Saudi Arabia is on a tear this year - from setting up a $100b AI investment fund to organising a major tech conference attracting over 200,000 attendees. Saudi is slowly transitioning from being just seen as a “source of funding” towards building a density of talent, technology manufacturing and collaborative infrastructure. The country is straddling the US-China struggle for technological influence (e.g. the US raising concerns over Chinese access to Saudi supercomputer research).

   
   

   

5. Drake used deepfakes of Snoop Dogg and Tupac Shakur and is now being sued - check out his insanely viral AI track 

   
   

6. xAI, Elon Musk’s OpenAI rival, is reportedly closing in on $6b in funding at a $18b valuation

   

   xAI is raising $6b (up from $3b due to heavy demand) on a $18 pre-money valuation. The deal is expected to close in the coming weeks - with reported participation from Sequoia Capital, Future Ventures, and Valor Equity Partners.