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This is awesome, and kudos to BFL for releasing the weights. The financial sustainability of open-source is hard to get right, and giving academics this model for free while charging a reasonable licensing fee for startups is something I think makes sense if it allows BFL and others to continue releasing open-weight models.

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Would it be financially sustainable if BFL had to pay for express permission for all the image and derived-from-video content it uses? (No)

I think this is a separate issue. No model provider currently obtains express permission from the content they train on. But some model providers, like BFL, can choose to give back to the open-source/weights community even when they don't have to. I think this outcome is strictly better than them choosing not to give back, which they totally could have done.

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