OpenAI and News Corp form Global Alliance: Revolutionizing Journalism

The journalism world has taken a significant turn with the announcement of an alliance between OpenAI and News Corp. This agreement promises to revolutionize how we consume news, combining artificial intelligence technology with the extensive content of one of the largest media companies.

A Strategic Alliance

The collaboration between OpenAI and News Corp will allow the tech company to access updated content and historical archives from a wide range of prestigious publications. These include:

• The Wall Street Journal
• The Times
• The Sun
• The Australian
• New York Post

The goal is clear: to provide users with high-quality information in their interactions with OpenAI’s AI.

Access to Content

With this alliance, OpenAI has secured a licensing agreement with News Corp, the parent company of notable newspapers like The Wall Street Journal, New York Post, and The Daily Telegraph. This is the latest partnership achieved through OpenAI’s Preferred Publishers Program, leaked in recent weeks.

Current and Archived Content

OpenAI now has access to current and archived content from The Wall Street Journal, Barron’s, MarketWatch, Investor’s Business Daily, FN, and New York Post. The agreement also includes other properties such as The Times, The Sunday Times, The Sun, The Australian, The Daily Telegraph, The Courier Mail, The Advertiser, and Herald Sun. The news materials will be used to train the company’s AI systems and in the responses that ChatGPT provides to users.

Financial Aspects

A report published in The Wall Street Journal estimates that the pact could exceed $250 million in value over the next five years. The valuation includes “cash compensation and credits for the use of the startup’s technology.”

Compensation and Credits

The compensation includes fixed payments for the licensing of news and credits for the technology provided by OpenAI. This ensures a steady revenue stream for News Corp while providing OpenAI with the necessary content to train its AI models.

Statements from Leadership

Robert Thomson, CEO of News Corp, stated, “This historic agreement will set new standards of veracity, virtue, and value in the digital age.” Sam Altman, CEO of OpenAI, shared this view. “With this partnership, we are laying the foundation for a future in which AI deeply respects, enhances, and upholds world-class journalism standards.”

Benefits for Users

Through this alliance, OpenAI users will have access to high-quality news directly through AI platforms. Sam Altman, CEO of OpenAI, expressed his enthusiasm: “We deeply value News Corp’s history as a leader in global journalism and are excited to enhance our users’ access to their high-quality reporting.”

Previous Journalism Partnerships

This agreement is not OpenAI’s first foray into journalism. In March, the company signed agreements with Le Monde and Prisa Media to integrate French and Spanish news. It has also established collaborations with the Associated Press and the American Journalism Project.

Past Agreements

In less than a year, OpenAI has signed six agreements with major media and news organizations, including the Associated Press and the German media conglomerate Axel Springer. These partnerships allow OpenAI to access up-to-date and relevant information to train its AI models and improve ChatGPT’s responses.

Addressing Data Use Concerns

At a time when big tech companies face criticism for using public data without consent, OpenAI is taking a different path. By partnering with major publications, it not only ensures quality content but also addresses concerns about unauthorized data use.

Ethical Considerations

This strategy is also seen as a way to train future AI models, such as the anticipated GPT-5. By obtaining quality content from authorized sources, OpenAI can develop more accurate and reliable models.

Training Future AI Models

The alliance with News Corp will play a crucial role in training OpenAI’s future AI models. The importance of having access to high-quality data cannot be overstated, as it is fundamental for developing advanced models like GPT-5.

Impact on Content Neutrality

While the alliance promises significant benefits, there are concerns about how media biases will be managed in AI-generated content. Integrating news from various sources could help mitigate these biases, but it will be crucial to see how OpenAI handles this diversity to maintain objectivity and trust in its responses.

Managing Biases

OpenAI will need to ensure that different viewpoints and perspectives are adequately represented to avoid biases in the generated content. This will be essential for maintaining user trust in the impartiality of the provided information.

Evolution of Digital Journalism

This collaboration marks an important milestone in the evolution of digital journalism. As artificial intelligence and journalism become more intertwined, the focus will be on respecting and enhancing high-quality journalism standards. Users can expect a richer and more accurate experience in obtaining news and analysis.

Summary of OpenAI’s Media Partnerships

The AI company has signed six agreements with major media and news organizations in less than a year. Last July, it reached an agreement with the Associated Press, and five months later, it signed a contract with the German media conglomerate Axel Springer to use information published on sites like Business Insider and Politico. In April of this year, it partnered with the Financial Times, and 15 days later, it struck a deal with Prisa Media, which manages titles like El País, Cinco Días, AS, and El Huffpost. This month, it secured a pact with Dotdash Meredith, the largest publisher in the United States and owner of over 40 media brands, including Investopedia, People, and Food & Wine.

Contributions from Partners

These partnerships have allowed OpenAI to access a wide range of updated and relevant content. The agreements ensure that OpenAI can offer precise and reliable responses to its users by integrating high-quality information into its AI models.

OpenAI’s Preferred Publisher Program

The platform is only available to “potential high-quality publishing partners.” Its purpose is to facilitate ChatGPT users’ access to publishers’ brands and content. According to the report, program members would benefit from a priority position in the chatbot’s results and “featured links” redirecting the audience to their digital properties.

Benefits for Publishers

The economic remuneration that media companies receive is divided into two categories. The first is known as guaranteed value, a fixed payment made by OpenAI to obtain the license to use the news. A report by The Information states that the amount ranges between $1 million and $5 million per year.

Interaction-Based Incentives

The second is variable value, which provides incentives based on the number of views and interactions that content receives on ChatGPT. Both bonuses are combined and delivered to partners in a single annual payment.

Legal and Ethical Challenges

Sam Altman’s company has faced strong criticism for not revealing the sources from which it extracts the information used to improve its AI systems’ performance. Various organizations and content creators claim that this secrecy hides copyright violations.

Legal Conflicts

OpenAI stated earlier this year that it is “impossible to train current major AI models without resorting to protected materials.” It argued that limiting training data to public domain materials “created over a century ago” prevents AI tools from meeting current user needs.

The organization faces several legal conflicts over alleged intellectual property violations. The New York Times filed a formal lawsuit against it, alleging that its AI models were trained with the publication’s content without authorization. Eight newspapers from the Alden Global Capital conglomerate filed a complaint accusing the startup of using copyrighted articles without permission.

The Future of AI in Journalism

OpenAI aims to avoid similar situations in the future with the PPP program. ChatGPT and similar services have successfully started mining the online search business. Some experts predict it is only a matter of time before these resources become the primary route for accessing all kinds of content, to the detriment of platforms like Google Search. The web traffic analysis platform StatCounter estimates that by the end of 2023, compared to 2022, Google traffic decreased by 0.4%, while Bard (also by Google), Bing, and ChatGPT traffic increased by 2%, 8%, and 4%, respectively.

Impact on Traditional Platforms

The long-term profitability of these agreements for publishers remains in question. The business of media companies still heavily depends on advertising revenue. Maintaining high levels of traffic on their digital properties is vital for maintaining a lucrative advertiser base. OpenAI’s chatbot provides a summary of the news, and this extract could be sufficient to meet user needs, despite the bot highlighting links that direct to news sites. A recent study by The Atlantic found that AI-integrated search engine functions can effectively answer 75% of queries without users needing to visit any website.

Conclusion

The alliance between OpenAI and News Corp marks a crucial moment at the intersection of artificial intelligence and journalism. This agreement will not only provide users with access to high-quality content but also set new standards in how news is consumed in the digital age. As this collaboration evolves, both OpenAI and News Corp are expected to continue innovating and establishing new paradigms in journalism and technology.

FAQs

What is the OpenAI and News Corp alliance about?

The alliance between OpenAI and News Corp is a strategic agreement that allows OpenAI to access updated and historical content from various News Corp publications to enhance its AI platforms, like ChatGPT.

How will users benefit from this alliance?

Users will have access to high-quality news directly through OpenAI’s AI platforms, improving their experience with precise and reliable information.

What are the financial details of the agreement?

The pact could exceed $250 million in value over the next five years, including cash compensation and credits for using OpenAI’s technology.

How does OpenAI address ethical concerns in data usage?

OpenAI is partnering with major publications to ensure quality content and avoid unauthorized data use, addressing concerns about using data without permission.

What is the future of AI in journalism?

AI in journalism is set to transform how news is consumed, providing more accurate and accessible information while setting new standards of quality and veracity in the digital age.

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