- PIP Labs, developer of the Story Protocol blockchain, has laid off several employees and contractors as it pivots toward AI opportunities.
- The company, valued at $2 billion after an $80 million funding round led by Andreessen Horowitz last year, is focusing on IP infrastructure for AI agents and data.
- The layoffs follow a broader trend of workforce reductions in the crypto industry this year, including cuts at Optimism and Block Inc..
- Story Protocol’s native IP token has fallen 86% from its all-time high of nearly $15 in September.
PIP Labs, the company developing the intellectual property-focused Story Protocol, has laid off several employees and contractors while shifting its focus toward Artificial Intelligence infrastructure. The reductions affected around 10% of staff across related entities, including the Story Foundation and infrastructure layer Poseidon, according to Chief Protocol Officer Andrea Muttoni.
Muttoni stated the company is “sharpening focus [through] a small workforce adjustment” and leaning into AI-related IP. Consequently, the firm is now concentrating on AI training data and the emergence of AI agents, areas where its incubated startup Poseidon has gained traction. Poseidon recently raised $15 million in a seed round and introduced a significant audio dataset.
This strategic pivot comes after PIP Labs secured an $80 million Series B funding round in 2024, led by Andreessen Horowitz. The network, designed to automate royalty payments for creatives, launched its native token last February. However, the token’s value has plummeted 86% over the past year according to CoinGecko, following an all-time high near $15.
The company also faced controversy last September when a Story-based meme coin tied to the “Baby Shark” creator collapsed after an IP dispute emerged. Meanwhile, PIP Labs’ layoffs reflect a wider pattern of cutbacks in the crypto sector this year. Other firms like Optimism and Block Inc. have also recently reduced staff, with the latter attributing its move to an AI pivot as well.
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