Startup using blockchain to prevent copyright theft by AI is valued over $2 billion after fresh funding

San-Francisco-based startup Story said Wednesday that it raised $80 million of funding for a blockchain designed to prevent artificial intelligence makers like OpenAI from taking creators' intellectual property without permission.

The round values the two-year-old company at $2.25 billion, sources familiar with the matter told CNBC. The sources preferred not to be named as the information has not been made public.

Story said that it raised the funds in a Series B round — typically the third major round of funding in a private startup's growth journey after seed and Series A — led by Andreessen Horowitz, which is also known as a16z. Crypto-focused venture capital firm Polychain also invested in the round.

Story, which is unprofitable and doesn't disclose revenue, is riding high on hopes from backers that its solution will give creators the ability to be attributed and compensated for work that gets fed into popular artificial intelligence platforms such as OpenAI's ChatGPT and Perplexity's AI-powered search engine.

A blockchain is a distributed database that maintains an immutable record of activity. It is the technology that underpins cryptocurrencies, such as bitcoin and ether.

Story acts as a blockchain network that allows creators to prove they made a piece of content and are the intellectual property owners by storing their IP on the platform.

The firm's tech works to protect individuals and entities' IP by embedding terms associated with it, such as licensing fees and royalty-sharing arrangements, into smart contracts.

Smart contracts are digital contracts stored on a blockchain that automatically execute once a certain set of terms are met.

This makes copyright holders' IP "programmable," SY Lee, Story's co-founder and