SPIF Investor FAQ

Style-Preserved Inference Flow
spif.live · Seed Stage · February 2026

1. The Technology

Q1: What is SPIF?

SPIF is real-time AI image generation that runs at 15 FPS at 2K resolution in a browser. You speak, touch, or gesture — and a Stable Diffusion XL model renders live on screen. No app install. No GPU on the client. Just a WebRTC stream to any device with a browser.

Q2: How is real-time SDXL possible? That model is huge.

We invented style-locked structural pruning. We take the full 12-billion-parameter SDXL model and prune it down to ~2.5 billion parameters while preserving a specific artist's style with near-zero degradation. This isn't quantization or distillation — it's architectural surgery. We remove the parts of the network that don't contribute to a given style, then fine-tune what remains. The result is a model that's 5× smaller, runs 5× faster, and looks indistinguishable from the original within its style domain.

Q3: How did you go from 2 FPS to 15 FPS in one week?

Combination of three things: (1) style-locked pruning reduced compute per frame dramatically, (2) inference pipeline optimization on RTX 4090s with custom CUDA kernels, (3) WebRTC streaming architecture that decouples rendering from display. The bottleneck was never the network — it was the model. Once we solved that, everything else fell into place.

Q4: What hardware do you run on?

Training on A100s (RunPod). Inference on RTX 4090s (RunPod). A single 4090 serves one concurrent user at 15 FPS / 2K. Targeting 4–6 concurrent streams per GPU as we optimize further.

Q5: What's the moat?

  1. Style-locked structural pruning — novel technique. Nobody else has done per-style architectural pruning of diffusion models. Defensive publication filed on tdcommons.org to prevent patents while keeping implementation as trade secret.
  2. The Stylus ecosystem — each pruned model is locked to an artist's style. Artists license, we generate, users pay. Network effects compound.
  3. Interaction paradigm — voice-controlled, touch-driven, real-time. This isn't "type a prompt and wait." It's a creative instrument. That UX gap is harder to close than people think.

Q6: Can someone replicate this with open-source tools?

They can try. Style-locked pruning — optimizing architecture for a specific aesthetic rather than general capability — is our invention. The open-source community is focused on making models smaller in general. We make models smaller and style-specific, which turns out to be a much more tractable problem with much better results.

Q7: What happens when newer base models come out?

Our pruning pipeline is model-agnostic. When SDXL's successor drops, we apply the same methodology. The technique transfers. The artist style data transfers. We're not married to any single base architecture.

Q8: Why WebRTC?

Zero friction. No downloads, no GPU requirements on the client, works on phones, tablets, laptops, smart TVs. A grandmother on a Chromebook gets the same experience as a designer on a workstation. Accessibility is a core value, not a feature.

2. Market & Competition

Q9: Why not just use Midjourney / DALL-E / Firefly?

Those are prompt-and-wait tools. You type words, you get a static image in 10–60 seconds. SPIF is a real-time creative instrument. You talk to it, touch it, sculpt it live. It's the difference between a typewriter and a piano. Different category entirely.

Q10: What about ComfyUI, Automatic1111, and the open-source ecosystem?

Tools for technical users who own GPUs. They require setup, troubleshooting, and expertise. Our audience is everyone else — the 99% who will never install Python. We also offer something they can't: a curated, licensed style marketplace where artists are compensated.

Q11: What's your target market?

  1. Creative consumers — people who want to make art but can't draw. Massive, underserved. Think Canva's early audience.
  2. Professional creatives — illustrators, designers, game devs who want real-time iteration in a specific style.
  3. Enterprises — brands that want on-brand visual generation locked to their style guide. This is the big money.

Q12: Market size?

AI image generation market projected at $15–20B by 2028. Broader creative tools market ~$30B. Licensing/royalties for visual IP adds another layer. The intersection is where we live.

Q13: Who's your real competition?

Adobe. They have Firefly, the creative suite, the enterprise relationships. But they're slow, they're corporate, and they can't do real-time. They also have a massive legal exposure problem with training data. We're clean.

Q14: What about Runway, Pika, and the video AI companies?

Different problem. They're doing text-to-video (seconds of generated footage). We're doing real-time interactive generation (continuous, responsive, live). We're closer to a game engine than a video editor.

3. Business Model

Q15: How do you make money?

  1. Subscriptions — users pay monthly for access to The Pad and a library of Styluses. Tiered: free (limited), pro ($15–25/mo), studio ($50–100/mo).
  2. Stylus licensing — artists create and list their Stylus. Revenue split on usage. Think Spotify for visual styles.
  3. Enterprise — custom Styluses locked to brand guidelines, private deployment, API access. High-margin, contract-based.

Q16: What are the unit economics?

At current RunPod 4090 pricing (~$0.35–0.55/hr per GPU), serving one concurrent user at 15 FPS costs roughly $0.40–0.55/hour. A pro user doing 2 hours/day, 20 days/month = ~$18/month in compute. At $20/month subscription, that's tight. But: (a) utilization won't be 100%, (b) we're targeting 4–6 concurrent streams per GPU, dropping cost to $0.08–0.14/hr per user, (c) enterprise pricing is 5–10× consumer.

Q17: When do margins get healthy?

At 4 concurrent users per GPU, compute cost per user-hour drops to ~$0.10. A $25/mo pro user averaging 30 hours/month costs us $3 in compute. That's 88% gross margin on compute alone. We expect to hit this efficiency within 6 months of launch.

Q18: How do artist royalties work?

Artists submit their portfolio. We train a style-locked pruned model (the Stylus). When users create with that Stylus, the artist earns a royalty — percentage of subscription revenue allocated by usage time. Estate licensing is supported: a deceased artist's estate can authorize a Stylus and collect royalties.

Q19: What's the artist's incentive?

Passive income from their artistic style without giving up their copyright. They're not selling their art — they're licensing the feel of their art. And unlike every other AI platform, they opted in and they get paid.

5. Team & Execution

Q25: Who's on the team?

  • Doug Sharp — Game designer and creative technologist. Created ChipWits (1984), The King of Chicago (1987). Microsoft Research. Decades shipping creative products that didn't exist before.
  • Michal Vavák — 20+ years digital innovation at Microsoft, BMW, Samsung. Builds products that scale. Operational backbone.
  • Phrog — AI framework and infrastructure. The engine under the hood.

Q26: Why is this team the right team?

Doug has been building interactive creative tools since before most AI researchers were born. ChipWits taught kids programming through AI in 1984. The King of Chicago was procedurally generated interactive storytelling in 1987. This isn't someone jumping on the AI hype — this is someone who's been doing this for 40 years and finally has the technology to realize the vision. Michal brings business discipline and enterprise credibility from three of the biggest tech companies on earth.

Q27: What's missing from the team?

We need to hire: a senior ML engineer focused on inference optimization, a frontend/UX lead for The Pad interface, and a head of artist relations. Seed funding covers these first three hires.

6. Financials

Q28: What's your current burn rate?

Lean. RunPod infrastructure ~$2–4K/month during development. No salaries yet — founders are bootstrapping. Total monthly burn: ~$3–5K.

Q29: What are you raising?

Seed round. Targeting $1.5–2.5M.

Q30: Use of funds?

  • 40% — Engineering hires (ML engineer, frontend lead, artist relations)
  • 25% — Infrastructure (RunPod scaling for beta and launch)
  • 20% — Artist partnerships and onboarding (first 50–100 Styluses)
  • 10% — Legal and ops
  • 5% — Marketing (community-driven, not ad-spend heavy)

Q31: When do you expect revenue?

Beta with paying users within 6 months of funding. First enterprise contracts within 12 months. Target: $50K MRR by month 18.

Q32: What's the runway on a $2M raise?

18–24 months at planned burn. We expect meaningful revenue before runway runs out. We'll raise Series A at month 12–15 if traction supports it.

Q33: What are the biggest financial risks?

GPU costs. If inference costs don't come down (they will — every trend points down), margins get squeezed. Mitigation: our pruning technique inherently reduces compute needs. Second risk: slower-than-expected artist adoption. Mitigation: start with estates and established artists who have clear economic incentive.

7. Vision & Roadmap

Q34: What's the 3-year plan?

Year 1: Launch The Pad with 50–100 Styluses. Prove the model. Hit $50K MRR. Build the community.

Year 2: Scale to 500+ Styluses. Launch enterprise product. API for third-party integration. Expand to video. Target $500K MRR.

Year 3: The Pad becomes the default creative platform for style-licensed generation. 2,000+ Styluses. Major brand enterprise accounts. International expansion. $2–5M MRR. Series B.

Q35: Where does this go long-term?

We become the platform layer between AI models and creative expression. Every artist has a Stylus. Every brand has a Stylus. Every person has access to real-time, style-authentic creative tools in their browser. We're building the Spotify of visual creativity — except artists actually get paid properly.

Q36: Will you do video?

Yes. Style-locked pruning applies to video diffusion models. Real-time style-locked video generation is the logical next step. Prototyping in Year 2.

Q37: What about 3D?

Roadmap for Year 3. As 3D generation models mature, our pruning technique applies. Style-locked 3D asset generation for game devs and designers.

Q38: What's the "punk rock" thing about?

We reject the "creator economy" framing where platforms extract value from creators. Artists aren't "creators" performing for an algorithm. They're artists. We pay them. They control their work. They can leave anytime. No engagement metrics, no algorithmic feeds, no dark patterns. Just tools that respect people.

Q39: What if a big player (Adobe, Google) builds this?

They'll try. But: (1) they can't move this fast — we went from 2 FPS to 15 FPS in a week, (2) they have legacy products to protect and can't cannibalize, (3) they have massive legal exposure on training data that we don't, (4) artist trust is earned, not bought. Nobody's going to license their style to the company that scraped it without permission.

Q40: Why should I invest?

Because real-time AI creativity is inevitable, and we're the only team that's actually built it. Not demoed it. Not promised it. Built it. 15 FPS, 2K, in a browser, today. The technology works. The business model is clear. The team has 40+ years of shipping things that didn't exist before. And we're early enough that your money actually matters.