Dappier's Marketplace Puts Publishers in Charge of Their Scraped Content

The rise of Napster in the late 1990s enabled unrestricted access to music files, often without compensating content creators. However, the introduction of the iPod and iTunes store revolutionized the industry, allowing artists and publishers to receive royalties for digital content usage.

Fast-forward to the present, and a similar issue has emerged. Companies are scraping content to train large language models without permission or compensation. Dappier, a startup, aims to address this issue by ensuring publishers receive fair payment for their content.

Today, Dappier announced a $2 million seed round and the launch of a marketplace where publishers can set prices for their content used in model training. According to CEO Dan Goikhman, Dappier is creating a monetization stack for the AI internet, providing a new revenue stream for publishers and data owners.

Goikhman said, “Our goal is to help media companies and information providers monetize their content as it’s being leveraged by emerging AI agents and platforms all around the world. The idea basically is, how do you create a payment infrastructure for content as it’s distributed?”

Dappier’s founders, including CEO Dan Goikhman, identified a market opportunity amidst the backlash from media owners over companies like OpenAI scraping their content without permission. In response, media owners were either taking legal action or opting for “open kimono licensing deal”, which sparked the idea for Dappier’s innovative solution.

He continued, “And we thought that there was perhaps a better path to give content creators and data providers for monetizing their content, which is to create a transactional marketplace where content can be licensed on a per query basis or monetized on an ad-supported basis.” 

The platform enables customers to access a content store via RSS feeds and build models using retrieval-augmented generation (RAG). Publishers can monetize their content by selling access to these models through the marketplace, setting prices similar to CPM ad rates. This marketplace provides an opportunity for publishers to explore alternative revenue streams, such as offering AI-powered search engines as premium features. By leveraging this technology, publishers can create new revenue streams and stay competitive in the industry.

Publishers are gaining a new monetization avenue through Dappier’s approach, a timely solution as they face challenges generating revenue solely through website advertising. This innovation also paves the way for individuals and small newsletter publishers to explore diverse monetization streams, beyond traditional advertising. Dappier has been in discussions with newsletter platforms to collaborate on integrating this new monetization method. 

The company has secured a $2 million funding round, led by Silverton Partners in Austin, Texas, where Dappier is headquartered.