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Several news platforms now have a new source of income after forming new partnerships with generative AI companies. Â
According to a report published by Wired, a substantial licensing agreement between OpenAI and German media conglomerate Axel Springer, allows OpenAI to incorporate articles from Axel Springer-owned outlets like Business Insider and Politico into its AI products. Notably, it would allow AI models to train and build data from articles written by the firm’s journalists.Â
Unlike the traditional approach of AI companies scraping the internet for training data, this deal involves a direct financial transaction. Wired reports that OpenAI will pay Axel Springer tens of millions of euros for the use of the firm’s content. This isn’t the first AI-media deal of its kind; the Associated Press is reported to have penned a similar deal back in July. However, the substantial sum cited in the deal with Axel Springer will likely get the attention of other media conglomerates around the country and the rest of the world. Â
On the surface, the new source of income would seem to benefit the media industry overall. Larger news outlets like The Washington Post generate hundreds of original reports yearly, but have had to downsize this year due to over-estimated financial projections and economic constraints. Â
OpenAI’s willingness to negotiate directly with media companies for original data and reports sets the stage for a new type of intrinsic value for a journalist’s work. It’s worth noting that details remain vague on whether individual journalists will benefit financially from this deal.Â
These new kinds of licensing agreements could redefine how journalistic content is used and compensated for in the digital age. However, it also introduces concerns about the long-term impact it will have on the media industry. An excellent point raised by Wired’s report is, if AI tools like ChatGPT become popular for summarizing up-to-date news, it could reduce direct traffic to news websites, potentially having adverse effects on a media company’s advertising and subscription revenue.Â
