The digital content industry is undergoing a profound transformation as artificial intelligence reshapes how media is created, distributed, and monetized. At the forefront of this revolution are two technology companies with different approaches to harnessing AI's potential: Shutterstock (NYSE: SSTK) and Cheer Holding (NASDAQ: CHR).
Shutterstock, the established global creative platform, has positioned itself as a key player in the AI ecosystem by providing high-quality training data to leading AI developers. The company generated $104 million in 2024 from licensing its media library to train AI models, with CEO projections indicating this figure will reach $250 million by 2027 – representing about a third of the company's total revenue last year. While impressive, this would still constitute approximately one-fifth of Shutterstock's projected $1.2 billion total revenue by 2027, roughly double its current proportion.
Unlike competitors who initially resisted AI image generation, Shutterstock embraced the technology early, partnering with OpenAI to roll out an image creator powered by DALL-E 2. This partnership dates back to 2021, though the image creator wasn't launched until late 2022. Beyond OpenAI, Shutterstock has established licensing agreements with Nvidia, Meta, LG, and others to develop generative AI models and tools across various media formats including 3D models, images, and text.
Recognizing concerns from creators, Shutterstock has taken a different approach than companies using scraped internet content without compensation. Instead, it partners with OpenAI to supply training data for DALL-E models while maintaining a "contributor fund" that pays artists for their work's role in training AI systems and provides ongoing royalties tied to licensing for newly generated assets.
Cheer Holding, meanwhile, is carving its own path in the AI landscape. The company is a multifaceted technology enterprise that expertly combines mobile internet infrastructure with advanced AI-driven digital services. Its integrated digital ecosystem supports efficient, secure content creation and transactions while bridging traditional digital media with next-generation tech innovations.
In September 2024, Cheer announced a comprehensive upgrade to CHEERS Telepathy to version 2.3, featuring powerful multimodal applications supporting users across 12 countries and regions, including the United States, Japan, South Korea, and various Asian markets. The platform's brand-new interactive function allows users to easily access AI applications with just one touch to create live images, where any photo can be animated to talk and interact with users.
The company's AI initiatives have shown remarkable growth. By the end of 2024, accumulated downloads of CHEERS Telepathy grew by 830.8% year-over-year to approximately 12.1 million. Monthly active users increased by 733.3% to approximately 2.5 million, with average monthly visits reaching approximately 3.4 million.
In February 2025, Cheer Holding announced plans to further accelerate its AI development by entering into a non-binding investment framework agreement to acquire a 60% equity stake in Beijing Zhong Ke Zhi Guo Technology Co. (ZKZG), a provider of synthetic data utilizing generative AI and simulation technology. The acquisition will be executed through a combination of share issuance and cash payment.
Financially, the companies present different profiles. Cheer Holding reported revenues of $147.2 million for the full year 2024, with net income reaching $26 million and net cash provided by operating activities of approximately $22.9 million. Shutterstock, meanwhile, experienced a slight decline in its year-to-date return of 5.44% as of February 2025, underperforming the broader market's upward trend of 4.19% over the same period. The company faces heightened competition alongside evolving customer demands.
As AI continues to transform the digital content landscape, both companies are positioning themselves to capitalize on emerging opportunities. In January 2025, Shutterstock announced a merger with Getty Images, claiming that the resulting expansion in stock photo libraries will provide better competition against AI-driven image creation tools. This strategic move, combined with its AI partnerships, signals Shutterstock's commitment to maintaining relevance in an increasingly AI-dominated market.
For investors and industry observers, the contrasting approaches of these two companies offer valuable insights into the diverse strategies being employed to navigate the AI revolution in digital content.