The launch of OpenAI’s Sora 2 and other advanced AI video generation tools is fundamentally reshaping the creator economy, according to Michael Mignano, a partner at Lightspeed Ventures. In an appearance on the podcast “Sourcery,” Mignano presented a stark vision of social media’s future where AI-generated content replaces human creators, making individual influencers “far, far, far less valuable.”
Mignano, who has deep roots in the online media space as former VP of product at Aviary (acquired by Adobe) and cofounder of podcasting platform Anchor (acquired by Spotify), argues that the shift comes down to economics and attention. TikTok’s algorithm is powerful precisely because it keeps users engaged, but it still requires human creators to produce content—and that comes with costs. AI video generation could dramatically reduce those costs by creating content instantaneously and artificially tailored to each viewer’s preferences.
The technology is already making inroads. AI influencers have emerged on Instagram, TikTok Shop faces an influx of AI scams, and seemingly innocent viral videos—like cute bunnies on trampolines—are actually AI-generated. While TikTok now allows users to filter out AI-generated videos from their feeds, and some users remain skeptical of current AI content quality, the trajectory is clear.
Mignano’s investment portfolio includes Elon Musk’s xAI, where he invested in 2024 before the company acquired X (formerly Twitter). He acknowledges the “death of the creator” scenario is “devastating” but believes it marks a “whole new chapter for the internet.” This aligns with the “dead internet theory” referenced by industry leaders like Alexis Ohanian and Sam Altman, which suggests bot activity already exceeds human activity online.
The era of social media megastars may be declining. Reed Duchscher, Mr. Beast’s former manager, told Business Insider that building internet businesses now favors “hyper-niche” audiences over massive followings. For creators hoping to survive this transition, Mignano offers one path forward: quality and uniqueness. He argues that platforms will no longer reward humans posting “the same old, tried and true formats and memes,” and that “true uniqueness of image, likeness, and creativity will be the only viable path for human-created content.”
Key Quotes
That’s why the TikTok algorithm is so powerful. But it still requires human beings to make the content, and there’s a cost to that.
Michael Mignano, Lightspeed Ventures partner, explaining how AI could eliminate the human labor costs currently required to feed social media algorithms, fundamentally changing the economics of content creation.
The individual creator becomes far, far, far less valuable in that dynamic.
Mignano describing the future state of social media where AI-generated content replaces human creators, dramatically reducing the economic value of individual influencers and content producers.
Platforms will no longer reward humans posting the same old, tried and true formats and memes. Instead, true uniqueness of image, likeness, and creativity will be the only viable path for human-created content.
Mignano’s advice to creators on how to survive in an AI-dominated content landscape, emphasizing that only genuinely unique and creative content will be able to compete with AI-generated material.
Our Take
Mignano’s prediction may seem extreme, but the underlying economics are compelling. AI content generation represents a classic disruption scenario: dramatically lower costs threatening an established industry. However, his analysis may underestimate human psychology’s preference for authentic connection and the “parasocial relationships” that drive creator success. The real future likely lies somewhere between his dystopian vision and today’s status quo—a hybrid model where AI handles commodity content while premium human creators command higher value for authenticity and unique perspectives. The key question isn’t whether AI will replace all creators, but rather which creators will successfully differentiate themselves and how platforms will balance efficiency with authenticity. The creator economy won’t die; it will stratify, with top-tier human creators becoming more valuable even as the middle tier faces AI competition.
Why This Matters
This story represents a critical inflection point for the creator economy, which has grown into a multi-billion dollar industry over the past decade. The emergence of sophisticated AI video generation tools like Sora 2 threatens to fundamentally disrupt the economic model that has sustained millions of content creators, influencers, and digital entrepreneurs.
The implications extend beyond individual creators to platform economics, advertising markets, and the authenticity of online spaces. If AI can generate personalized content more cheaply and efficiently than humans, it could reshape how social media platforms operate, potentially prioritizing algorithmic content generation over human creativity. This raises profound questions about the future of creative work, digital authenticity, and whether the internet will become increasingly dominated by synthetic content.
For businesses and marketers, this shift could mean lower content production costs but also challenges in building authentic brand connections. The “dead internet theory” becoming reality would fundamentally alter how companies approach digital marketing and audience engagement, potentially requiring new strategies to cut through AI-generated noise.
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Source: https://www.businessinsider.com/lightspeed-partner-sora-creators-far-less-valuable-2025-12