NightCafe, a Cairns-based AI-powered art-creating platform, may not have the same level of publicity as its rivals, but it boasts over 25 million users who have created nearly a billion images using its tools. The company was founded by Angus Russell in 2019, initially as a website where people could buy and sell AI-generated art. However, NightCafe struggled to monetize the platform until Angus implemented a credit system that allowed users to buy more credits. This move transformed NightCafe into a profitable venture, prompting Elle Russell to join the team to run the business side of operations.
NightCafe gained further success when it integrated the popular DALL-E alternative, VQGAN+CLIP, onto its platform. Images created with this tool quickly gained popularity on platforms like Reddit, leading to a significant increase in revenue. The company has since evolved its platform, integrating APIs from various AI vendors to provide custom interfaces for third-party generators. NightCafe also offers printing services for customers who want to purchase mugs, T-shirts, and prints of the art they generate.
The platform fosters a sense of community among its users, allowing them to share their art, collaborate, and participate in AI art challenges. NightCafe introduced fine-tuning, which enables users to train a model to recreate specific styles, faces, or objects. However, there are certain restrictions in place to prevent the creation of deepfakes or inappropriate content.
NightCafe’s revenue has reached approximately $4 million annually, with over a million monthly visitors and 20,000 subscribers. The company faces potential copyright concerns due to the AI models it uses, although it may be protected by laws that hold users, rather than platforms, liable for illegal content. NightCafe expects its users to adhere to copyright regulations and disclaims any responsibility for infringement.
The platform has a small moderation team that monitors content, but some users still manage to post images that violate NightCafe’s guidelines. The company aims to strike a balance between allowing freedom of expression and maintaining community standards. It has policies in place regarding political content and deepfakes, although enforcement can be challenging.
Moving forward, NightCafe plans to continue expanding its range of generative models and focus on building a strong community. The company believes that its aggregation of top AI models sets it apart from competitors, even as image-generation technology becomes more commoditized. NightCafe aims to remain accessible and provide the best variety and highest level of technology to its users.