AI Video Threatens Creator Economy, Says Lightspeed Partner

Lightspeed Ventures partner Michael Mignano has predicted a bleak future for social media influencers due to the rapid advancement of AI-generated video. According to Mignano, the technology represents a 'whole new chapter for the internet' that will ultimately lead to the 'end of the creator.' He argues that the primary goal of social media algorithms is to maintain user attention, a goal that currently requires expensive human labor. As AI tools like OpenAI's Sora 2 and Google's Nano Banana become more sophisticated, the cost of content production will drop significantly. This shift will render the individual creator 'far, far, far less valuable' in the digital ecosystem. However, Mignano notes that survival is possible for those who can offer genuine uniqueness and creativity, moving away from repetitive formats and memes.

Lightspeed Ventures partner Michael Mignano has described the current era of AI-generated video as a 'whole new chapter for the internet.' In a detailed analysis, Mignano predicted that these technological advancements would lead to the 'end of the creator.' His perspective is grounded in the economics of social media platforms. He explains that algorithms, such as the one powering TikTok, are designed to maximize user retention. Currently, this requires human beings to produce content, which incurs a significant cost in terms of labor and payments.

AI-generated video threatens to disrupt this economic model. Mignano points out that while AI could drastically reduce production costs, it spells bad news for the influencer industry. He argues that in a future where content is generated instantaneously and artificially to suit the viewer, the individual creator loses their leverage. 'The individual creator becomes far, far, far less valuable in that dynamic,' Mignano stated. He envisions a social media landscape where content is tailored perfectly to the user without the need for human intermediaries.

The catalyst for Mignano's warning is the arrival of highly realistic AI video tools. The launch of OpenAI's Sora 2 reportedly sent 'shockwaves through the social media economy.' This tool introduced a more realistic form of video generation, allowing for even narrower tailoring of content to user preferences. Following this, Google's Nano Banana provided lifelike images, further blurring the line between human and artificial creation. Mignano noted that 'AI slop was already rampant,' but these new tools elevate the potential for mass displacement.

Despite the current capabilities, Mignano acknowledges that AI video has not yet reached the point of perfect, on-demand tailoring. Some users remain perturbed by the current iteration of AI content. Platforms are responding to user sentiment; for example, TikTok currently allows users to opt out of seeing AI-generated videos in their feeds. However, the presence of AI is already undeniable. AI influencers have appeared on Instagram, and the TikTok Shop is reportedly inundated with AI-generated scams. Mignano cites a viral video of bunnies bouncing on a trampoline as an example of content that was likely AI-generated.

The potential for an internet dominated by AI aligns with the 'dead internet theory,' a concept referenced by industry leaders including Alexis Ohanian and Sam Altman. This theory suggests that bot activity could eventually surpass human activity on the web. Mignano's prediction contributes to a growing discourse on the authenticity of online spaces. Concurrently, the era of the social media megastar appears to be waning. Reed Duchscher, the former manager of MrBeast, indicated that the market is shifting toward building internet businesses with 'hyper-niche' audiences rather than broad, mass-market appeal.

Mignano's background lends weight to his analysis. He is a veteran of the online media space, having co-founded the photo-editing tool Aviary (acquired by Adobe) and the podcasting platform Anchor (acquired by Spotify). At Lightspeed Ventures, he also invested in Elon Musk's xAI in 2024, prior to xAI's acquisition of X (formerly Twitter). Despite the grim forecast, Mignano admits that the 'death of the creator' is 'devastating,' though he frames it as an inevitable evolution of the internet.

While the outlook may seem dire, Mignano offers a path forward for human creators. In an email correspondence, he emphasized that quality will ultimately win out. The era of posting repetitive formats and memes is ending, as platforms will no longer reward this behavior. Instead, Mignano advises that 'true uniqueness of image, likeness, and creativity will be the only viable path for human-created content.'

Creators must pivot to offering something that AI cannot easily replicate. This involves:

• Developing a distinct personal brand and visual identity.
• Focusing on genuine creativity rather than algorithmic trends.
• Engaging with audiences on a deeper, more personal level.

By leveraging these strengths, human creators may be able to maintain their value even as the digital landscape shifts toward automation.