Wall Street Journal owner News Corp struck a major content-licensing pact with generative artificial-intelligence company OpenAI, aiming to cash in on a technology that promises to have a profound impact on the news-publishing industry, The Wall Street Journal reported.
The deal could be worth more than $250 million over five years, including compensation in the form of cash and credits for use of OpenAI technology, according to people familiar with the situation. The deal lets OpenAI use content from News Corp’s consumer-facing news publications, including archives, to answer users’ queries and train its technology.
“The pact acknowledges that there is a premium for premium journalism,” News Corp Chief Executive Robert Thomson said in a memo to employees Wednesday, “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 tools such as OpenAI’s humanlike chatbot ChatGPT is poised to transform the publishing business. AI companies are hungry for publisher’s content, which can help them refine their models and create new products such as AI-powered search.
CNBC reported as part of the deal, OpenAI will be able to display content from News Corp-owned outlets with ChatGPT chatbot, in response to user questions. The startup will “enhance its products,” or, likely, to train its artificial intelligence models.
News Corp. will also “share journalistic expertise to help ensure the highest journalism standards are present across OpenAI’s offering” as part of the deal, according to a release.
“We believe a historic agreement will set new standards for veracity, for virtue, and for value in the digital age,” Robert Thomson, CEO of News Corp, said Wednesday in a release. “We are delighted to have found principled partners in Sam Altman and his trusty, talented team who understand the commercial and social significance of journalists and journalism.”
The Hollywood Reporter wrote OpenAI has cut another major media licensing deal. The artificial intelligence firm has inked a deal with News Corp, that will bring content from its stable of media outlets to ChatGPT and other OpenAI products.
“Through this partnership, OpenAI has permission to display content from News Corp mastheads in response to user questions and to enhance its products, with the ultimate objective of providing people the ability to make informed choices based on reliable information and news sources,” the companies said in the announcement.
The News Corp. properties The Wall Street Journal, Barron’s, MarketWatch, Investor’s Business Daily, FN, and New York Post; The Times, The Sunday Times, and The Sun; The Australian, news.com.au., The Daily Telegraph, The Courier Mail, The Advertiser, and Herald Sun are all part of the deal, terms of which were not disclosed.
In my opinion, it seems like many corporations have decided that AI-generated content is the best way to go. My concern is that large corporations will decide that OpenAI is better for their needs, and will begin layoffs of human employees.