Livepeer & Generative AI Video

Key Insights

• Livepeer released a new directive to incorporate generative AI capabilities within the network's GPUs
• Generative video represents a significant revenue opportunity for Livepeer, with unit revenues nearly four orders of magnitude larger than current transcoding unit revenues
• Currently, Livepeer is one of the lower valued networks on a GPU count basis compared to other compute networks like Akash and Nosana

Livepeer, the video transcoding network, recently released its direction to support AI video generation on the network’s GPUs in addition to the transcoding tasks the network currently performs.

AI video generation, or text-to-video, takes a text prompt from a user (or another AI agent) and converts that prompt into a new video or edits an existing video or picture.

As a network, Livepeer benefits the more it can keep the underlying GPUs utilized in the most lucrative activity possible. Adding AI video generation capabilities will provide another demand channel for the network's compute resources while introducing another revenue stream that is more lucrative than transcoding.