News Corp. has entered a multiyear deal with OpenAI to share news content for training and user query purposes. The deal grants OpenAI access to fresh and archived material from News Corp.’s major publications such as The Wall Street Journal, Barron’s, New York Post, The Daily Telegraph, and more. The financial details of the deal were not disclosed, but it is estimated to be worth over $250 million over five years.
In addition to News Corp., OpenAI has made licensing deals with other media companies like The Associated Press, Axel Springer, Prisa Media, Le Monde, and Financial Times for training purposes. However, the deal with News Corp. allows OpenAI to use news content to directly answer user questions, aligning with Google’s recent search engine changes.
Contrary to the collaborative approach of News Corp., The New York Times filed a lawsuit against OpenAI and Microsoft for allegedly using its journalists’ work without permission to train chatbots. OpenAI CEO, Sam Altman, sees the News Corp. deal as a significant step towards merging journalism and technology.
Jason Cuomo, from Moody’s Ratings, views the deal as credit positive and validates News Corp.’s strategy to monetize its media brands effectively. The agreement also emphasizes the potential for sales and profitability growth in the news media segment.
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The deal with News Corp. includes The Daily Telegraph in Australia, not the one in the U.K. The Associated Press also has a licensing and technology agreement with OpenAI, granting access to part of AP’s text archives.
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This report was contributed to by AP Business Writer Matt O’Brien and Media Writer David Bauder.
