Latest news with #Genera
Yahoo
16-05-2025
- Business
- Yahoo
Why New Fortress Energy Stock Crashed After Earnings
New Fortress Energy was supposed to lose money last quarter, but it lost a lot more than analysts expected. The LNG company is selling assets to stay afloat. Problem is, it has a boatload of debt that probably isn't sustainable. 10 stocks we like better than New Fortress Energy › Liquefied natural gas (LNG) stock New Fortress Energy (NASDAQ: NFE) imploded in morning trading Thursday after reporting staggering losses and a big asset sale. Expected to lose $0.05 per share, New Fortress instead reported last night that it lost $0.73 per share in Q1 2025. Shares plunged 62.6% through 10:35 a.m. ET. New Fortress noted, "We have a number of notable one time events such as the FEMA claim, FSRU sub charters, and the Genera incentive payment that we expect will boost remaining earnings through 2025." But for the time being, things look pretty grim. The company has had trouble buying LNG at attractive rates, to fuel its power-generating operations in Latin America, hurting profits badly, and forcing the company to sell off assets to try to remain afloat. Last night, New Fortress said it has sold its Jamaican LNG import terminal in Montego Bay, offshore floating storage and other assets to Excelerate Energy (NYSE: EE) for a little over $1 billion. The company plans to use the proceeds from this sale to pay down about $325 million in debt. Problem is, New Fortress has a lot more debt where that came from. In total, the company carries $9 billion in debt, net of cash on hand. Although occasionally profitable as calculated according to generally accepted accounting principles (GAAP), New Fortress has never generated a penny of actual free cash flow, and at last report was burning cash at the rate of $3.2 billion per year. $1 billion in asset sales will hardly make a dent in that, meaning New Fortress will probably go deeper and deeper into debt. If you still own it, I fear it's probably time to sell. Before you buy stock in New Fortress Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and New Fortress Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $620,719!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,511!* Now, it's worth noting Stock Advisor's total average return is 962% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Excelerate Energy. The Motley Fool has a disclosure policy. Why New Fortress Energy Stock Crashed After Earnings was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
14-05-2025
- Business
- Business Wire
New Fortress Energy Completes Sale of Jamaica Assets & Operations to Excelerate Energy and Announces First Quarter 2025 Results
NEW YORK--(BUSINESS WIRE)--New Fortress Energy Inc. (Nasdaq: NFE) ('NFE' or the 'Company') today announced the completion of the sale of its assets and operations in Jamaica to Excelerate Energy, Inc. (NYSE: EE) ('Excelerate') for $1.055 billion. The transaction was initially announced by NFE on March 27, 2025. Proceeds from the transaction will be used to reduce NFE's corporate debt and for general corporate purposes. Pursuant to the transaction, Excelerate Energy, Inc. has acquired full ownership of NFE's LNG import terminal in Montego Bay, offshore floating storage and regasification terminal in Old Harbour, and 150 MW Combined Heat and Power Plant in Clarendon, along with the associated infrastructure. 'The closing of the sale of our Jamaican assets to Excelerate is a significant milestone for the Company as we streamline our operations and paydown corporate debt through asset sales,' said Wes Edens, Chairman and CEO of New Fortress Energy. 'NFE has made a positive impact on Jamaica's energy transition, and we are proud of the contributions our world class employees and assets have made in improving energy costs and reliability on the island. We are confident that Excelerate will continue NFE's vision of providing reliable and cost-effective energy to Jamaica and continue to drive substantial progress towards improving Jamaica's energy future.' The Company today also reported its financial results for the first quarter of 2025. Adjusted EBITDA (1) of $82 million in the first quarter of 2025 Net loss of $197 million in the first quarter of 2025 EPS of $(0.73) on a fully diluted basis in the first quarter of 2025 Total cash balance of $827 million, of which $448 million is unrestricted as of March 31, 2025 Our first quarter 2025 Adjusted EBITDA of $82 million is entirely comprised of what we consider to be core earnings, which consist of earnings from our terminal and vessel operations without regard to any one-time gains that have benefited our results in prior periods. Other than the novation income that we earned last quarter, our revenue from terminal operations have been largely unchanged since the termination of our temporary power contract in the first quarter of 2024. As we have previously disclosed, we sold the emergency power plants to the Puerto Rico Electric Power Authority in March 2024 and no longer recognize revenue from the temporary power project. We are pursuing a request for equitable adjustment related to the early termination of the temporary power project. We have a number of notable one time events such as the FEMA claim, FSRU sub charters, and the Genera incentive payment that we expect will boost remaining earnings through 2025. We expect our core earnings to increase as our developments in Brazil, Nicaragua and expansions in Puerto Rico, come online (3). In Brazil, we have continued to make great progress on our power plant developments, with our 624 MW CELBA plant ~95% complete (3), and the adjacent PortoCem power plant that is over 50% complete (3). Both projects are on-time and on-budget and we expect to start generating earnings from the CELBA power plant in the third quarter of this year. These developments are fully funded with asset-level debt already in place. Our Fast LNG asset has been fully commissioned, and we are in the process of increasing available liquefaction capacity through optimization projects. We have just announced the closing of the sale of our Jamaican assets and operations to Excelerate Energy, Inc. for $1.055 billion, highlighting our near term focus on asset sales and corporate debt reduction. We've committed to use the proceeds of this transaction to pay down $270 million of our Revolving Credit Facility, and pay down $55 million of our Term Loan A facility, with remaining proceeds going to cash on our balance sheet. Following the sale of our Jamaica business, our plan is to simplify our balance sheet with a potential asset based financing with a similar structure to other liquefier financings and using our robust portfolio of LNG terminals and long term LNG supply and downstream demand contracts. Financial Detail Please refer to our Q1 2025 Investor Presentation (the 'Presentation') for further information about the following terms: 1)'Adjusted EBITDA,' see definition and reconciliation of this non-GAAP measure in the exhibits to this press release. 2) 'Total Segment Operating Margin' is the total of our Terminals and Infrastructure Segment Operating Margin and Ships Segment Operating Margin, each as reported in our financial statements. Our segment measure also excludes unrealized mark-to-market gains or losses on derivative instruments, certain contract acquisition costs and deferred earnings from contracted sales for which a prepayment has been received. 3) "Completed", 'Placed into service' "Online" or similar statuses (either capitalized or lower case) with respect to a particular project means we expect gas to be made available in the near future, gas has been made available to the relevant project, or that the relevant project is in full commercial operations. Where gas is going to be made available or has been made available but full commercial operations have not yet begun, full commercial operations will occur later than, and may occur substantially later than, our reported Operational, Completion or Deployment date, and we may not generate any revenue until full commercial operations have begun. We cannot assure you if or when such projects will reach full commercial operation. Our ability to export liquefied natural gas depends on our ability to obtain export and other permits from governmental and regulatory agencies. No assurance can be given that we will receive required permits, approvals and authorizations from governmental and regulatory agencies in connection with the exportation of liquefied natural gas on a timely basis or at all or that, once received, we will be able to maintain in full force and effect, renew or replace such permits, approvals and authorizations. Preliminary Results The company's actual operating results remain subject to the completion of its quarter-end closing process, which includes review by management and the Audit Committee of the company's Board of Directors. While carrying out such procedures, the company may identify items that would require it to make adjustments to the preliminary estimates of the results set forth herein. As a result, the company's actual results could differ from the preliminary results set forth herein and such differences could be material. The information presented herein should not be considered a substitute for the financial information the company files with the Securities and Exchange Commission in its Quarterly Report on Form 10-Q for the three months ended March 31, 2025. The company has no intention or obligation to update the preliminary estimates of operating results set forth above prior to the release of its consolidated financial statements as of and for the three months ended March 31, 2025. Additional Information For additional information that management believes to be useful for investors, please refer to the presentation posted on the Investors section of New Fortress Energy's website, and the Company's most recent Annual Report on Form 10-K, which is available on the Company's website. Nothing on our website is included or incorporated by reference herein. Earnings Conference Call Management will host a conference call on Wednesday, May 14, 2025 at 4:30 P.M. Eastern Time. The conference call may be accessed by dialing (888) 256-1007 (toll free from within the U.S.) or +1-323-701-0225 (from outside of the U.S.) fifteen minutes prior to the scheduled start of the call; please reference 'NFE First-Quarter 2025 Earnings Call' or conference code 8378656. A simultaneous webcast of the conference call will be available to the public on a listen-only basis at under the Investors section within 'Events & Presentations.' Please allow time prior to the call to visit the site and download any necessary software required to listen to the internet broadcast. A replay of the conference call will be available at the same website location shortly after the conclusion of the live call. About New Fortress Energy Inc. New Fortress Energy Inc. (NASDAQ: NFE) is a global energy infrastructure company founded to address energy poverty and accelerate the world's transition to reliable, affordable, and clean energy. The Company owns and operates natural gas and liquefied natural gas (LNG) infrastructure and an integrated fleet of ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. Collectively, the Company's assets and operations reinforce global energy security, enable economic growth, enhance environmental stewardship and transform local industries and communities around the world. Cautionary Statement Concerning Forward-Looking Statements This press release contains certain statements and information that may constitute 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than historical information are forward-looking statements that involve known and unknown risks and relate to future events, our future financial performance or our projected business results. You can identify these forward-looking statements by the use of forward-looking words such as 'expects,' 'may,' 'will,' 'can,' 'could,' 'should,' 'predicts,' 'intends,' 'plans,' 'estimates,' 'anticipates,' 'believes,' 'schedules,' 'progress,' 'targets,' 'budgets,' 'outlook,' 'trends,' 'forecasts,' 'projects,' 'guidance,' 'focus,' 'on track,' 'goals,' 'objectives,' 'strategies,' 'opportunities,' 'poised,' or the negative version of those words or other comparable words. Forward looking statements include statements regarding the transaction, including deleveraging following the closing of the transaction and other anticipated benefits from the transaction. These forward-looking statements are based upon current information and involve a number of risks, uncertainties and other factors, many of which are outside of the Company's control. Actual results or events may differ materially from the results anticipated in these forward-looking statements. Specific factors that could cause actual results to differ from those in the forward-looking statements include, but are not limited to: our strategy and plans for the Company, including the structure, form, timing and nature of the Company's business in the future and characteristics of the business going forward; risks related to the development, construction, completion or commissioning schedule for the facilities; risks related to the operation and maintenance of our facilities and assets; failure of our third-party contractors, equipment manufacturers, suppliers and operators to perform their obligations for the development, construction and operation of our projects, vessels and assets; our ability to implement our business strategy; our capital allocation plans, as such plans may change including with respect to de-leveraging actions; operational execution by our businesses; changes in law, economic and financial conditions, including the effect of enactment of U.S. tax reform or other tax law changes, trade policy and tariffs, interest and exchange rate volatility, commodity and equity prices and the value of financial assets; the other factors that are described in "Forward-Looking Statements" in the Company's most recent earnings release or SEC filings; and the other factors that are described in "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, as updated in our Quarterly Reports on Form 10-Q. These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of the Company's forward-looking statements. Other known or unpredictable factors could also have material adverse effects on future results. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no duty to update or revise any forward-looking statements, even though our situation may change in the future or we may become aware of new or updated information relating to such forward-looking statements. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in New Fortress Energy Inc.'s annual and quarterly reports filed with the Securities and Exchange Commission, which could cause its actual results to differ materially from those contained in any forward-looking statement. Exhibits – Financial Statements Adjusted EBITDA For the three months ended March 31, 2025 (Unaudited, in thousands of U.S. dollars) Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered in isolation or as an alternative to income from operations, net income, cash flow from operating activities or any other measure of performance or liquidity derived in accordance with GAAP. We believe this non-GAAP measure, as we have defined it, offers a useful supplemental view of the overall operation of our business in evaluating the effectiveness of our ongoing operating performance in a manner that is consistent with metrics used for management's evaluation of our overall performance and to compensate employees. We believe that Adjusted EBITDA is widely used by investors to measure a company's operating performance without regard to items such as interest expense, taxes, depreciation, and amortization which vary substantially from company to company depending on capital structure, the method by which assets were acquired and depreciation policies. Further, we exclude certain items from our SG&A not otherwise indicative of ongoing operating performance. We calculate Adjusted EBITDA as net income, plus transaction and integration costs, contract termination charges and loss on mitigations sales, depreciation and amortization, asset impairment expense, loss on asset sales, interest expense, net, other (income) expense, net, loss on extinguishment of debt, changes in fair value of non-hedge derivative instruments and contingent consideration, tax expense, and adjusting for certain items from our SG&A not otherwise indicative of ongoing operating performance, including non-cash share-based compensation and severance expense, non-capitalizable development expenses, cost to pursue new business opportunities and expenses associated with changes to our corporate structure, certain non-capitalizable contract acquisition costs plus our pro rata share of Adjusted EBITDA from certain unconsolidated entities, less the impact of equity in earnings (losses) of certain unconsolidated entities. Adjusted EBITDA is mathematically equivalent to our Total Segment Operating Margin, as reported in the segment disclosures within our financial statements, minus Core SG&A, including our pro rata share of such expenses of certain unconsolidated entities, minus deferred earnings for which a prepayment was received. Core SG&A is defined as total SG&A adjusted for non-cash share-based compensation and severance expense, non-capitalizable development expenses, cost of exploring new business opportunities and expenses associated with changes to our corporate structure. Core SG&A excludes certain items from our SG&A not otherwise indicative of ongoing operating performance. The principal limitation of this non-GAAP measure is that it excludes significant expenses and income that are required by GAAP to be recorded in our financial statements. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measure to our GAAP net income, and not to rely on any single financial measure to evaluate our business. Adjusted EBITDA does not have a standardized meaning, and different companies may use different Adjusted EBITDA definitions. Therefore, Adjusted EBITDA may not be necessarily comparable to similarly titled measures reported by other companies. Moreover, our definition of Adjusted EBITDA may not necessarily be the same as those we use for purposes of establishing covenant compliance under our financing agreements or for other purposes. Adjusted EBITDA should not be construed as alternatives to net income and diluted earnings per share attributable to New Fortress Energy, which are determined in accordance with GAAP. The following table sets forth a reconciliation of net income to Adjusted EBITDA for the three months ended March 31, 2024, December 31, 2024 and March 31, 2025: Segment Operating Margin (Unaudited, in thousands of U.S. dollars) Performance of our two segments, Terminals and Infrastructure and Ships, is evaluated based on Segment Operating Margin. Segment Operating Margin reconciles to Consolidated Segment Operating Margin as reflected below, which is a non-GAAP measure. We define Consolidated Segment Operating Margin as GAAP net income, adjusted for selling, general and administrative expense, transaction and integration costs, contract termination charges and loss on mitigation sales, depreciation and amortization, asset impairment expense, loss on asset sales, interest expense, other (income) expense, loss on extinguishment of debt, net, (income) loss from equity method investments and tax (benefit) provision. Consolidated Segment Operating Margin is mathematically equivalent to Revenue minus Cost of sales minus Operations and maintenance minus Vessel operating expenses, each as reported in our financial statements. (1) Consolidation and Other adjusts for deferred earnings that were included in Terminals and Infrastructure in the prior quarters, but were recognized as revenue during the fourth quarter of 2024. Expand Condensed Consolidated Balance Sheets For the three months ended March 31, 2025 and 2024 (Unaudited, in thousands of U.S. dollars, except share and per share amounts) March 31, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 447,862 $ 492,881 Restricted cash 379,537 472,696 Receivables, net of allowances of $13,322 and $13,629, respectively 273,136 335,813 Inventory 66,695 103,224 Assets held for sale - current 104,553 — Prepaid expenses and other current assets, net 201,925 205,496 Total current assets 1,473,708 1,610,110 Construction in progress 3,901,113 3,574,389 Property, plant and equipment, net 5,545,980 5,842,807 Right-of-use assets 465,939 618,733 Intangible assets, net 188,118 179,510 Goodwill 594,256 766,350 Deferred tax assets, net 6,848 2,698 Assets held for sale - non-current 633,654 — Other non-current assets, net 218,464 272,899 Total assets $ 13,028,080 $ 12,867,496 Liabilities Current liabilities Current portion of long-term debt and short-term borrowings $ 260,848 $ 539,132 Accounts payable 655,073 473,736 Accrued liabilities 268,083 391,359 Current lease liabilities 82,442 128,362 Liabilities held for sale - current 35,894 — Other current liabilities 171,342 174,829 Total current liabilities 1,473,682 1,707,418 Long-term debt 8,931,506 8,355,703 Non-current lease liabilities 355,050 475,161 Deferred tax liabilities, net 51,359 73,198 Liabilities held for sale - non-current 135,398 — Other long-term liabilities 168,851 166,358 Total liabilities 11,115,846 10,777,838 Commitments and contingencies (Note 20) Series B convertible preferred stock, $0.01 par value, 36,746 shares authorized, issued and outstanding as of March 31, 2025 (96,746 as of December 31, 2024); aggregate liquidation preference of $36,746 and $96,746 at March 31, 2025 and December 31, 2024 40,708 90,570 Stockholders' equity Class A common stock, $0.01 par value, 750 million shares authorized, 273.8 million issued and outstanding as of March 31, 2025; 266.5 million issued and outstanding as of December 31, 2024 2,738 2,664 Additional paid-in capital 1,722,829 1,674,312 Retained earnings (accumulated deficit) (3,766 ) 196,363 Accumulated other comprehensive income 26,671 3,089 Total stockholders' equity attributable to NFE 1,748,472 1,876,428 Non-controlling interest 123,054 122,660 Total stockholders' equity 1,871,526 1,999,088 Total liabilities and stockholders' equity $ 13,028,080 $ 12,867,496 Expand
Yahoo
16-04-2025
- Politics
- Yahoo
Puerto Rico plunged into darkness again as island-wide blackout hits
Puerto Rico was hit by another massive power outage Wednesday, leaving the United States territory in the dark for a second time in four months, officials said. Local power authorities, Genera and LUMA, recorded a system failure at approximately 12:40 p.m. that affected service island-wide. "Our staff is in constant communication with the power companies to identify the cause of the event and safely restore service," LUMA said in a statement posted to X. "We will keep you informed through our social media channels." MORE: Puerto Rico's power grid is struggling 5 years after Hurricane Maria. Here's why. The outage affects 1.4 million customers of LUMA Energy, the island's private power company, impacting 76% of its customer base, the company said. Rep. Ritchie Torres (D-NY) claimed in a social media post that over 400,000 Puerto Ricans are without electricity. "The three million American citizens of Puerto Rico have long been denied affordable and reliable electricity—despite paying some of the highest utility rates in the United States," Torres said. "Access to dependable power—a basic right most Americans take for granted—remains out of reach for millions on the island. As we speak, more than 400,000 Puerto Ricans are without electricity in the wealthiest nation on Earth. That is a national disgrace." This outage is the latest in a series of significant blackouts that have plagued the island in recent years, following the devastation of Hurricane Maria in 2017, which destroyed much of the power grid. Gov. Jenniffer González, who was traveling, stated that officials were "working diligently" to resolve the outage. MORE: How did Puerto Rico's electric system become so chaotic? Experts weigh in The island's aging power infrastructure has been a persistent source of frustration for residents, who face frequent outages and some of the highest electricity rates in the U.S. In December, Puerto Rico experienced an island-wide blackout on New Year's Eve when an underground power line failure plunged the island into darkness for two days. Officials warned customers that temporary outages could still be expected even after the system was fully restored. Power outages have become so common in Puerto Rico that many residents have installed solar panels and batteries in their homes and businesses. The ongoing instability of the power grid has also led to protests, with many criticizing LUMA, which took over power transmission and distribution in 2021. Puerto Rico plunged into darkness again as island-wide blackout hits originally appeared on
Iraqi News
24-02-2025
- Business
- Iraqi News
AI opens ‘endless' doors for fashion models, closes others
London – London-based model Alexsandrah Gondora understands the power of being in 'two places at the same time' thanks to an AI replica of herself: 'She's doing the hard work so I don't have to!' Fashion designers and retailers can book her digital double for photo shoots without her having to travel or physically be there, Gondora told AFP. It is a solution that 'saves time', said the model, who is also walking down in-person runways at London Fashion Week, which runs until Monday evening. In the fashion industry, artificial intelligence is already used by brands to create visual imagery for e-commerce websites and customised advertising campaigns at a lower cost. While the technology opens up opportunities for some, critics fear AI will render many professionals, including models, make-up artists and photographers obsolete — and could risk promoting an artificial standard of beauty. – Customisable – In one video, sculpted male models flex their muscles next to glamorous women, with a backdrop of marble pools and gilded mirrors. But none of it is real: this Christmas campaign was entirely generated with the use of AI by studio Copy Lab for the Swedish underwear brand CDLP. 'We are a very small company: I cannot go to a house in Beverly Hills and shoot a campaign,' said CDLP co-founder Christian Larson. According to Larson, 'real' photography has limitations. 'You have a film of this many pictures, the sun will set, and the light will disappear, and the budget will run out,' Larson told AFP. But with AI, 'you dive into this black hole of endless options.' Preparing an ad campaign involving a photo shoot in the French Alps for ski eyewear would normally take several months to complete and could cost 35,000 euros ($37,000), but can be done virtually for just 500 euros in a few days, claimed Artem Kupriyanenko, citing a campaign done by his technology company Genera. London and Lisbon-based Genera boasts a catalogue of 500 AI-generated models, all of which it claims to own the copyrights for. The avatars can be customised by clients: 'We can do any body shape, any gender, any ethnicity,' assured Genera's creative head Keiron Birch, who said the practice was 'super inclusive'. But AI tends to create a characteristic face type, which differs from generator to generator, said Carl-Axel Wahlstrom, co-founder of Stockholm-based Copy Lab, an 'AI creative studio'. MidJourney, for example, has a tendency to generate models with thicker lips. – Grey area – Generative AI is trained on banks of images of models that are often retouched or which reflect a dominant 'white, Western' aesthetic, explained Wahlstrom. To obtain less generic results, he refines the descriptions or 'prompts' he provides to the AI engines. And for more 'authentic' results, he also trains them on 'imperfect' databases, where he has, for example, added images of 'regular skin, like my skin, my girlfriend's skin, people that we know's skin.' Alexsandrah Gondora was critical of brands which use AI images created from databases found on the internet without paying the model, who she called the 'middleman'. Models also face being duplicated virtually without their knowledge. The 'Fashion Workers Act', due to come into force this summer in New York, hopes to tackle this grey area by enabling models to control the use of AI to reproduce their likeness. But its practical application could prove complicated. Gondora, however, is compensated for the work done by her digital alter ego and has the final say on how it is used. This is also the case when she helps bring Shudu Gram, an AI-generated black supermodel, to life. This virtual character created in 2017 and billed as the 'world's first digital supermodel' is followed by 237,000 followers on Instagram. Gondora and several other real-life black models lend their features to various shoots and projects for Shudu. Last year, Shudu was a model for a 1960s-inspired collaboration by fashion label MAX&Co and London-based designer Richard Quinn. When used ethically, AI does not deprive models from diverse backgrounds of opportunities, assured Gondora, who claimed that this technology has 'opened certain doors' for her. One of them is that her AI model is 'timeless'. 'There is no expiration for my AI… it's timeless. Somewhere out there in the world, my AI will always be young to me, even when I'm old.'
Khaleej Times
23-02-2025
- Business
- Khaleej Times
AI opens 'endless' doors for fashion models, closes others
London-based model Alexsandrah Gondora understands the power of being in "two places at the same time" thanks to an AI replica of herself: "She's doing the hard work so I don't have to!" Fashion designers and retailers can book her digital double for photo shoots without her having to travel or physically be there, Gondora told AFP. It is a solution that "saves time", said the model, who is also walking down in-person runways at London Fashion Week, which runs until Monday evening. In the fashion industry, artificial intelligence is already used by brands to create visual imagery for e-commerce websites and customised advertising campaigns at a lower cost. While the technology opens up opportunities for some, critics fear AI will render many professionals, including models, make-up artists and photographers obsolete -- and could risk promoting an artificial standard of beauty. - Customisable - In one video, sculpted male models flex their muscles next to glamorous women, with a backdrop of marble pools and gilded mirrors. But none of it is real: this Christmas campaign was entirely generated with the use of AI by studio Copy Lab for the Swedish underwear brand CDLP. "We are a very small company: I cannot go to a house in Beverly Hills and shoot a campaign," said CDLP co-founder Christian Larson. According to Larson, "real" photography has limitations. "You have a film of this many pictures, the sun will set, and the light will disappear, and the budget will run out," Larson told AFP. But with AI, "you dive into this black hole of endless options." Preparing an ad campaign involving a photo shoot in the French Alps for ski eyewear would normally take several months to complete and could cost 35,000 euros ($37,000), but can be done virtually for just 500 euros in a few days, claimed Artem Kupriyanenko, citing a campaign done by his technology company Genera. London and Lisbon-based Genera boasts a catalogue of 500 AI-generated models, all of which it claims to own the copyrights for. The avatars can be customised by clients: "We can do any body shape, any gender, any ethnicity," assured Genera's creative head Keiron Birch, who said the practice was "super inclusive". But AI tends to create a characteristic face type, which differs from generator to generator, said Carl-Axel Wahlstrom, co-founder of Stockholm-based Copy Lab, an "AI creative studio". MidJourney, for example, has a tendency to generate models with thicker lips. - Grey area - Generative AI is trained on banks of images of models that are often retouched or which reflect a dominant "white, Western" aesthetic, explained Wahlstrom. To obtain less generic results, he refines the descriptions or "prompts" he provides to the AI engines. And for more "authentic" results, he also trains them on "imperfect" databases, where he has, for example, added images of "regular skin, like my skin, my girlfriend's skin, people that we know's skin." Alexsandrah Gondora was critical of brands which use AI images created from databases found on the internet without paying the model, who she called the "middleman". Models also face being duplicated virtually without their knowledge. The "Fashion Workers Act", due to come into force this summer in New York, hopes to tackle this grey area by enabling models to control the use of AI to reproduce their likeness. But its practical application could prove complicated. Gondora, however, is compensated for the work done by her digital alter ego and has the final say on how it is used. This is also the case when she helps bring Shudu Gram, an AI-generated black supermodel, to life. This virtual character created in 2017 and billed as the "world's first digital supermodel" is followed by 237,000 followers on Instagram. Gondora and several other real-life black models lend their features to various shoots and projects for Shudu. Last year, Shudu was a model for a 1960s-inspired collaboration by fashion label MAX&Co and London-based designer Richard Quinn. When used ethically, AI does not deprive models from diverse backgrounds of opportunities, assured Gondora, who claimed that this technology has "opened certain doors" for her. One of them is that her AI model is "timeless". "There is no expiration for my AI... it's timeless. Somewhere out there in the world, my AI will always be young to me, even when I'm old."
