OpenAI, the artificial intelligence research lab known for developing ChatGPT, has entered into a multi-year agreement with News Corp, the parent company of The Wall Street Journal, MarketWatch, The Sun, and over a dozen other publishing brands. 

This landmark deal will allow OpenAI to access and display current and archived content from News Corp’s extensive portfolio in ChatGPT. According to a report by The Wall Street Journal, the deal is estimated to be worth $250 million over five years, paid in cash and credits.

Details of the Agreement

The partnership marks a significant step for both companies. For OpenAI it represents an opportunity to enhance the quality and reliability of ChatGPT’s responses by integrating premium journalism from reputable sources. 

For News Corp, the deal provides a substantial financial boost and acknowledges the value of high-quality journalism in the digital age. “The pact acknowledges that there is a premium for premium journalism,” News Corp Chief Executive Robert Thomson stated in a memo to employees. 

“The digital age has been characterized by the dominance of distributors, often at the expense of creators, and many media companies have been swept away by a remorseless technological tide. 

The onus is now on us to make the most of this providential opportunity.”

The Rise of Generative AI

Since its release at the end of 2022, ChatGPT has gained immense popularity, with its AI-powered chatbots providing increasingly sophisticated responses. 

The quality of these responses hinges on the data used to train the underlying models. Historically, AI companies have relied on publicly available data scraped from the internet, often without the explicit consent of content creators. 

However, there is a growing trend towards formal agreements with content providers to ensure access to current, high-quality, and authoritative information.

Broader Industry Context

OpenAI is not alone in securing partnerships with content publishers. In recent months, the company has inked deals with several major players in the media industry, including Reddit.

the Financial Times, Dotdash Meredith, the Associated Press, German publisher Axel Springer (which owns Politico and Business Insider in the US and Bild and Die Welt in Germany), and Spain’s Prisa Media.

Last month, News Corp also finalized an agreement with Google, reportedly worth between $5 and $6 million, to use its content for training AI models.

This deal reflects the growing trend of tech giants recognizing the importance of high-quality data to train their AI systems and the value of forging alliances with established news organizations.

Hours before the News Corp announcement, Business Insider reported that Meta (formerly Facebook) is contemplating similar agreements with news publishers to enhance the training data for its AI chatbot, which is integrated into Facebook, Messenger, WhatsApp, and Instagram.

Financial Implications for the News Industry

The influx of money from AI companies represents a burgeoning revenue stream for the struggling news industry. 

However, not all publishers are eager to jump on the bandwagon. Some, like The New York Times, have taken a more adversarial stance, suing OpenAI and Microsoft over the use of their content for training AI systems without permission. 

Other prominent outlets, including the BBC and The Verge, have blocked OpenAI from scraping their websites.

The agreement between OpenAI and News Corp is a testament to the evolving relationship between technology companies and traditional media. 

As generative AI develops, the incorporation of top-notch journalism into AI models like ChatGPT could establish a new standard for the veracity and accuracy of the data these systems provide.

For News Corp, the deal not only offers a significant financial benefit but also underscores the enduring value of premium journalism in an increasingly digital world. 

As AI technology and media continue to intersect, the industry will likely see more collaborations aimed at harnessing the strengths of both sectors.

The Information is Taken from New York Post and Washington Post