The State of Generative Media - Gorkem Yurtseven, FAL

Channel: aiDotEngineer

Published at: 2025-07-16

YouTube video id: P370D8Kmlkw

Source: https://www.youtube.com/watch?v=P370D8Kmlkw

[Music]
It's so nice to see a generative media
track in the AI conference, AI engineer
conference this year. Um, we my company,
I work at this company called file.ai.
Uh we call ourselves a generative media
platform. Uh and this is a term that's
been around for a while. Uh but we kind
of owned it and we called it uh the name
name of our of our company generative
media platform. Uh and the way we define
it at least is it it's a generative
video audio or image. And uh our company
is seeing all these kinds of models
using our inference engine and we are
partnering up with some closed source
model providers as well. So I've been
doing this for a couple of years but it
is a really really new market and
throughout the talk I'm going to walk
you through how we got here and a little
bit of the history and what's next.
I remember in 2022 when Sam Alman
started tweeting about Delhi too. Um I
was working at home. It was end of
COVID. I know COVID took a little longer
in San Francisco, but I I remember
sitting on the floor. Could not believe
my eyes. People were tweeting at him and
he was tweeting back pretty high
definition images of incredible things
that people people were tweeting. Like
looking back to it, obviously it all
looks kind of bad quality, but I
remember at the time I was I thought
this was the most incredible technology
ever. And I was I was in the industry. I
I knew what was going on. not as much as
today, but I I thought at that time
OpenAI was so far ahead of anything else
and it's going to be so so hard for uh
normal people to catch up to this
technology. I was I was I remember this
was one of the biggest WTF moments of my
life.
But then you can tell me, hey Gam, this
was this was all gonna happen. Uh there
was other AI waves before before the
this last big wave. Uh there was a GAN
breakthrough that people did similar
things using GANs deep dream from Google
went through a phase and then there was
even a viral uh consumer AI application
of it called Prism. People uploaded
their selfies and they were able to
change their avatars. But uh the
capabilities and the applications of the
technology was not nearly as much as
what generative media can be used today.
Not only the previous AI wave,
generative media or being able to create
art with computers has been around kind
of since the computers has been around.
Um this guy Harold Cohan, this is a
recreation of his project, but basically
he created these massive computers to
draw draw on these huge canvas uh to to
create art similar to how a human would
draw. And then we have uh computer
graphics and generative graphics, things
like that. Throughout the years, people
tried to generate visuals and art using
different computing technologies all
along.
Uh right after Sam Alman's tweet, uh
playing field evened out really really
quickly. So Del 2 was April 6. Right
after that, Mjourney released their
initial model in beta as as a Discord
bot. And then very quickly after that uh
stable diffusion
opensourced their model which was a huge
huge thing. People now were able to run
a technology similar to Delhi 2 in their
homes in their home GPUs. people started
building services around it and then
SDXI came out and then now there's many
different image models open and closed
source and most recently flux was
released um early uh in the in the in
the summer last year
and with all the this playing field
evening out the the marginal cost
ofation is approaching zero and I'm I'm
very careful when I choose my words
here. I'm not saying marginal cost of
creativity. It's marginal cost of
creation. I think the storytelling is
still really important. Creativity is
still really important. But once once
you have that set up, creating that next
new thing is is approaching zero. And we
believe this is going to have huge
impacts on different kinds of industries
and markets. So anything from social
media, advertising, marketing, fashion,
obviously film and movies, gaming and
e-commerce is going to be transformed by
generative media. And this
transformation is going to continue
until all content one way or the other
is is impacted by AI.
Um so if you've been following software
has been eating media all along. Uh
YouTube just from basically ads is
generating more revenue than any other
media company except Disney. This is
this is pretty remarkable. And with
Disney revenue there is clearly non
media revenue in there. They have parks,
they have cruise ships, they have other
things. So it's not too hard to say
YouTube right now is one of the highest
revenue generating media companies in
the world and it is happening through
through ads and whenever uh ad industry
is is impacted by technology it usually
grows in volume. So we believe the same
thing is going to happen with with
generative media and ads.
uh we believe ad industry is one of is
going to be the first industries to be
impacted at a large scale by generative
media. We believe the the size of the
industry is going to increase. So it's
really funny in since 2000
every ad spend has
so grew three three times since 2000 but
all that growth happened
software ads. So we believe something
similar is going to happen with AI uh
driven ads and ad industry is going to
grow and most of that growth is going to
come from AI and there are s several
different ways how this can happen. We
believe ads themselves are
hyperpersonalized.
So this might mean um you are generating
many different versions of the same ad
but maybe 10,000 different demographics
really quickly or it can it can also
mean it's targeted towards a certain
individual. If you are coming from a
certain website then the ad can be
generated on the fly and then it could
also be be interactive in in ways you
know that that I just mentioned things
generated on the fly and that that might
mean many different things in the in the
industry. One other thing why I think
generative media fits the ad industry
very well is the abundance of content.
For example, I I probably won't watch a
blockbuster movie every single day. So
like even if we have thousand more
movies this year, I I probably have to
sit down and watch a movie a day to go
through all of them. But I probably
won't be able to do that. But ads, there
can be kind of unlimited content. Every
time I'm phone, I'm seeing ads on TV.
There are ads all the time. And it
doesn't matter if the ad is different.
like maybe there there needs to be some
consistency but ad industry can can
actually survive with with a lot more
content and things can get a lot
creative.
So we we were ahead of the time a little
bit last year we did a we did an ad ad
promo with A24 Civil War movie and it
was one of those interactive ideas that
I was I was talking about. So, if you've
seen the the movie, it's about uh a
imaginary civil war in the US and they
had this campaign of these little green
toy soldiers and they created a live
marketing site where you could put a
selfie and then uh we we created a
little toy soldier with your selfie and
your description. Uh and they put this
on Time Square. people were able to
display their own faces on these little
green toy soldiers. So AI is going to
help us create experiences like this
that are interactive and personalized.
The the other trend we are watching
really closely is e-commerce. Um if
you've been paying attention to it,
e-commerce is growing about 1% uh every
year getting percentage of the US retail
industry. So this is a trend that's
happening with or without AI and we
believe generative media is gonna play a
big big part on e-commerce's growth as
well.
It's it's already there are many
companies trying to redefine how people
shop online and because online shopping
is very visual AI can add a lot of
interactivity to the experience. In
fact, it's one of the earliest product
market fits I've seen in generative
media. This has been happening for a
couple months, maybe a year, that
virtual tryon is is one of the clearest
product market fits that I see in the in
the AI industry. Many different
retailers, e-commerce websites are
adapting adapting this technology. Many
different startups are being built uh on
it. So, I believe this is going to be
everywhere. every retailer, every
e-commerce website is a potential uh
generative media user.
And then there is video. Um so when when
Sam tweeted Delhi too, I thought OpenAI
was so far ahead and no one was able to
catch up. People caught up incredibly
fast. So this time he did the same trick
with Sora when Sora was released a year
and a half ago basically. And this time
around maybe Sora was even more
impressive than Delhi 2 in terms of uh
how far ahead things looked like. But uh
this time around I was incredibly
excited that researchers at OpenAI was
able to actually do things like this.
And from from the past experience and I
know that if this is possible in in one
place people are going to go be able to
do similar things in others. So I was
incredibly excited when Sam Elman
started tweeting about Sora because I
knew very soon a technology like this
was going to be everywhere. In fact, it
started happening. So this is a little
snapshot of our company's revenue which
I think is a good proxy of of the entire
market. uh early this year in October we
barely had any video model uh usage in
the platform and in February this this
went all the way up to 18%. Um I didn't
get time to update it but I looked
yesterday it's around 30% today. So it
is growing really fast even though it's
expensive even though it still doesn't
work as well. uh video models are going
to completely take over the generative
media market and I have some predictions
about how much bigger the video market
is going to be compared to the image
market. So rough math, but we believe
video models are 20x more compute
intensive. And let's say if it's 5x more
engaging and it's going to impact more
industries because it's going to be more
useful to the industry, we believe all
said and done the video market is going
to be generative video market is going
to be 100x to 250x
uh bigger than the image generation
market. uh and we are just just
scratching the surface here. I believe
the image generation market has a ton of
growth that's going to happen in the in
the next couple of years as well, but
video is growing much much faster than
that. And when all said and done, it's
going to be a much bigger uh market.
And yeah, video models are leveling up
as well. You probably have all seen the
the newest model from deep mind from
Google V3. Uh we keep adding new
capabilities
uh into the video models. First it was
consistency and then now with sound uh
really the things people are generating
with it is is is incredible and every
time a new capability is added it
unlocks a different use case in the in
the industry. So, um, it's it's not on
our platform yet, but I'm I'm very
curious to see how people are going to
start creating using V3 and what what
different use cases it's going to unlock
in the ad industry or or or the
e-commerce industry. So, that is very
interesting to see. So, where is where
is the video market going? Uh, we
believe there is so so much to improve.
um we are going to have faster and
cheaper video generation until video
generation basically becomes real time.
Uh so generating one second of video in
1 second. So you you'll be able to
stream generated content uh to the user
and this is going to have very different
implications on how people interact with
this this technology. Everything uh
potentially becomes interactive. the
line between games and and movies uh
gets blurred. Um so how is this going to
impact social apps? How it's going to
impact live events? Uh people like if
you play Fortnite or similar games,
people are already having live events
there. Is it going to become uh more
lifelike? Are more norm like the our
parents like you know people who are not
used to playing video games are going to
be part of this experience. I'm I'm
really curious about the the future of
this technology
and then image models are not done yet
as well. Um there's there's been a lot
of different uh improvements in the past
couple of months on the image models as
well. Uh Flux context and GPT40
uh introduced new editing capabilities,
better text rendering capabilities. At
at one point people thought okay maybe
this is as good as image models are
going to get but with with these new
releases uh and new capabilities it is
opening up to more use cases in the
industry. Whenever we see a a
technological shift like this happening
we see a lot of different um more mature
players in the industry picking up uh
these technologies. So we believe
something similar is going to happen
with flux context and GPT4 and it's
going to blend into more of the
enterprise use cases people are uh
trying to do. Um and then this is this
is pretty much it. Um we we are hiring
so please visit our website fi/ careers.
uh we we are hiring machine learning
engineers, inference engineers, product
engineers, uh all sorts of positions and
I'll be hanging around rest the day
today. So find me, talk to me, would
love to discuss whatever uh related to
generative media or about the industry
in general. Uh thank you so much.
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