OpenAI and News Corp, which owns The Wall Street Journal, MarketWatch, The Sun, and several more publishing brands, have signed a multi-year deal to show news from these publications in ChatGPT. News Corp announced the news recently.
OpenAI will not have access to both current and archived content from News Corp’s publications and use the data to further train its AI models. Neither company has revealed the terms of the deal, but a report in The Wall Street Journal suggests that News Corp would receive $250 million over the next five years in cash and credits.
“The pact acknowledges that there is a premium for premium journalism,” News Corp Chief Executive Robert Thomson reportedly said in a memo. “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.”
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New Deal To Boost OpenAI’s AI Training Process
Generative AI has gained immense popularity ever since OpenAI released ChatGPT in 2022. However, the quality of the responses provided by the AI-backed chatbots is only as good as the data that is used in order to train the models that power it. Until now, AI firms have trained their models by scraping publicly available data from the internet often without the consent of creators.
But in recent times, they have been striking financial deals with news organizations to ensure that AI models can be trained on information that is recent. In the past few months, OpenAI has signed deals with Reddit, the Financial Times, Dotdash Meredith, the Associated Press, and German publisher Axel Springer, which owns Politico and Business Insider in the US.
In April, News Corp also signed a deal somewhere between $5 and $6 million with Google to train its AI models, as per a report in The Information.
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OpenAI Isn’t The Only Company Signing Deals
OpenAI and Google aren’t the only companies signing such deals to train their AI models. Just a few hours before News Corp made the announcement, Business Insider reported that Meta, which recently rolled out its AI chatbot into Facebook, Messenger, WhatsApp, and Instagram, and also seels AI-powered sunglasses, and was planning to crack its own deal with news publishers to gain access to training data.
Money for AI firms is becoming a growing revenue source for a struggling news industry. However some publishers are still skeptical about striking these deals. The New York Times has dragged OpenAI and Microsoft to court over using content for training AI systems.