Getty Images spending millions to battle a ‘world of rhetoric’ in AI suit, CEO says
Getty Images’ logo seen displayed on a smartphone with an AI chip and symbol in the background.
Budrul Chukrut | Sopa Images | Lightrocket via Getty Images
LONDON — Getty Images is spending millions of dollars to take on a “world of rhetoric” through its Stability AI suit, the photo licensing company’s boss Craig Peters says.
Peters told CNBC in an interview that both Stability AI — the U.K.-based startup best known for its text-to-image model Stable Diffusion — and other AI labs are stealing copyright-protected material to train their AI models for commercial gain.
These firms, he said, are taking copyrighted material to develop their powerful AI models under the guise of innovation and then “just turning those services right back on existing commercial markets.”
“That’s disruption under the notion of ‘move fast and break things,’ and we believe that’s unfair competition,” Peters added. “We’re not against competition. There’s constant new competition coming in all the time from new technologies or just new companies. But that’s just unfair competition, that’s theft.”
Peters said the AI industry is making the argument that if developers are forced to pay for access to creative works, this will “kill innovation.”
“We’re battling a world of rhetoric,” the CEO told CNBC.
Getty is suing Stability AI in both the U.K. and U.S. over allegations that the company copied 12 million images without permission or compensation “to benefit Stability AI’s commercial interests and to the detriment of the content creators.”
Stability AI has contested the legal action, saying it doesn’t consider Getty’s claims to have merit. The company acknowledges some images from Getty Images websites were used to train its Stable Diffusion model. However, the firm denies it’s liable in respect to any of the claims Getty has made.
Stability AI declined to comment on this story when contacted by CNBC.
The firm has previously argued its use of copyright-protected material online is sound under the “fair use” doctrine, which permits limited use of copyrighted material in certain circumstances — such as “transformative” uses that add new expression or meaning to original works.
‘Our case is very strong’
Technology startups like OpenAI, Anthropic and Mistral have flourished by taking vast amounts of data from the open web and using it to train their foundational AI models, which can produce lifelike texts, images and videos.
However, the strategies of these firms have raised concerns over their use of copyrighted material. Several lawsuits have targeted AI firms over alleged copyright infringements from The New York Times’ suit against OpenAI to several U.S. record labels’ claims against AI music generation services Suno and Udio.
Part of the reason Getty Images is pursuing legal action specifically against Stability AI and not other firms is because such legal pursuits are “extraordinarily expensive,” Peters added. “Even for a company like Getty Images, we can’t pursue all the infringements that happen in one week.”
“We can’t pursue it because the courts are just prohibitively expensive,” he said. “We are spending millions and millions of dollars in one court case.”
AI startups are being funded to the tune of several billions of dollars to develop their foundational models, with tech heavyweights like Microsoft, Google and Amazon ploughing cash into the field.
Nevertheless, Peters acknowledges that it’s not been an easy fight. “I think our case is very strong. But I’m going to caveat that: we had to file in the U.S. and the U.K., and to be candid, we didn’t know where this training took place,” he said.
“There are elements where we have to go through and then we’ve got to spend money for due diligence, and they resist and we’ve got to fight, and we go back and forth,” Peters added.
“The facts in aggregate at a global scale I think are absolutely in our favor. How they manifest themselves around the geographic and legal constructs that are there I think is still stuff that we’re going to have to continue to play out.”
The case is set for an initial trial to determine liability from June 9.
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CyberArk’s stock jumps on report Palo Alto Networks in talks to buy company for over $20 billion
Nikesh Arora, CEO of Palo Alto Networks, looks on during the closing bell at the Nasdaq Market in New York City, U.S., March 25, 2025.
Jeenah Moon | Reuters
CyberArk shares soared as much as 18% on Tuesday after The Wall Street Journal reported that cybersecurity provider Palo Alto Networks has held discussions to buy the identity management software maker for over $20 billion.
Cloud security is becoming an increasingly critical piece of the enterprise tech stack, especially as rapid advancements in artificial intelligence bring with them a whole new set of threats, and as ransomware attacks become more commonplace.
Founded in 2005, Palo Alto Networks has emerged in recent years as a consolidator in the cybersecurity industry and has grown into the biggest player in the space by market cap, with a valuation of over $130 billion. CEO Nikesh Arora, who was appointed to the job in 2018, has been on a spending spree, snapping up Protect AI in a deal that closed in July, and in 2023 buying Talon Cyber Security, Dig Security and Zycada Networks.
But CyberArk would represent by far Arora’s biggest bet yet. The Israeli company, which went public in 2014, provides technology that helps companies streamline the process of logging on to applications for employees.
CyberArk faces competition from Microsoft, Okta and IBM‘s HashiCorp. Another rival, SailPoint, returned to the public markets in February.
With Tuesday’s rally, CyberArk shares climbed to a record, surpassing their prior all-time high reached in February. The stock is up 29% this year, pushing the company’s market cap to almost $21 billion, after jumping 52% in 2024. Palo Alto shares, meanwhile, slid 3.5% on the report and are now up about 9% for the year.
Representatives from Palo Alto Networks and CyberArk declined to comment.
During the first quarter, CyberArk generated around $11.5 million in net income on around $318 million in revenue, which was up 43% from a year earlier.
It’s been an active stretch for big deals in the cyber market. Google said in March that it was spending $32 billion on Wiz, its largest acquisition on record by far, and a purchase intended to bolster its cloud business with greater AI security technology.
Networking giant Cisco also made its biggest deal ever in the security space, buying Splunk in 2023 for $28 billion. Splunk’s technology helps businesses monitor and analyze their data to minimize the risk of hacks and resolve technical issues faster.
— CNBC’s Ari Levy contributed to this report
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