The creators, who collectively have about 6.2 million subscribers across three YouTube channels, allege that Snap used their video content to train AI systems powering features such as the app’s “Imagine Lens,” which enables users to generate and edit images using text prompts.

The proposed class-action lawsuit, filed in the U.S. District Court for the Central District of California, claims Snap relied on large-scale datasets such as HD-VILA-100M, which were intended for academic research and not commercial use. The plaintiffs argue that Snap bypassed YouTube’s technical safeguards, terms of service, and licensing restrictions.

The case is being led by creators behind the h3h3 YouTube channel, as well as MrShortGame Golf and Golfholics. The lawsuit seeks statutory damages and a permanent injunction to prevent further alleged copyright infringement.

The Snap case follows similar lawsuits filed by the same creators against Nvidia, Meta, and ByteDance. It adds to a growing wave of legal challenges brought by content creators, authors, publishers, and artists against AI developers over the use of copyrighted material.

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Snap, the creator of Snapchat, is set to reduce its workforce by 10%, impacting over 500 employees. This move is aimed at supporting the company’s future growth.

The restructuring is expected to incur pre-tax charges between $55 million to $75 million, primarily for severance and related costs.

Snap emphasized the need to streamline its team, reduce hierarchy, and foster in-person collaboration. This workforce reduction marks Snap’s second wave of layoffs within months, following a smaller cut in late 2023 focusing on the product team. The company’s previous restructuring in 2022 resulted in a 20% staff reduction.

Snap is facing challenges in its hardware investments, with the Pixy drone recently discontinued and recalled due to a fire risk.

Despite a positive stock jump after Q3 earnings in October, where Snap surpassed revenue and user growth estimates, the company’s net loss widened by 2% year-over-year to $368 million.

Analysts have expressed concerns about Snap’s ability to navigate the volatile ad market, with expectations of a 3.3% year-over-year ad revenue decline in 2023.

Investors closely await Snap’s Q4 2023 earnings report, set to be released after the market’s close on February 6. The layoffs began on Friday, with more expected this week, as Snap reorganizes to adapt to market dynamics and improve operational efficiency.

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