A model for news to work with Big Tech
News is fuelling the AI rocket meaning a window exists to run an auction pitting Microsoft against Google.
As AI’s $2 trillion rocket blasts off using news content scraped from the web for free, OpenAI has struck its first content deal. For a paltry $5 million.
OpenAI, parent of ChatGPT and 49% owned by Microsoft, has “reached a two-year deal with the American Journalism Project to fund efforts by local outlets to experiment with artificial intelligence technology”, reports Axios.
It follows on the heels of The Associated Press’ two-year deal which opens their valuable news archive “for product experimentation”.
We’ve been here before.
With search, Google promised they would drive consumption by making publishers’ stories easier to find. What it did was make Google a $1.6 trillion ad company while the news industry lost 90% of its value.
With social, Meta promised it would drive engagement and give publishers younger audiences. It grew Meta into a $680 billion content troll while sending news sites worthless page views before banning news altogether. (Disc…
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