OpenAI secures major content deal with News Corp
The logo for OpenAI is shown in the illustration.
OpenAI, the artificial intelligence research lab run by Sam Altman, revealed on Wednesday that it has reached a significant agreement with media conglomerate News Corp. This arrangement gives OpenAI access to content from numerous notable News Corp outlets, expanding the data available for training its AI models, including the commonly used chatbot, ChatGPT.
The agreement comes after OpenAI, which is sponsored by Microsoft, recently agreed to license content from the Financial Times. Such access to massive amounts of high-quality data is critical for the construction and refining of AI models, which rely on a variety of trustworthy information sources.
News Corp, the parent firm of major news outlets including the Wall Street Journal, MarketWatch, and the Times, stands to benefit greatly from this collaboration. Historically, news publishers have struggled to receive a fair portion of the earnings earned by internet firms that distribute their material. This agreement might be a watershed moment, delivering a lucrative revenue stream for the collaborating media firms.
While OpenAI declined to disclose financial details, the Wall Street Journal, a News Corp subsidiary, said that the deal might be worth more than $250 million over five years. The conditions also state that content will not be made available on ChatGPT immediately after publishing, giving News Corp an advantage over its distribution channels.
This collaboration expands on OpenAI's prior content partnerships, which include a recent agreement with thesocial media platform Reddit. OpenAI intends to strengthen the capabilities of ChatGPT, which has been at the vanguard of the AI revolution since its inception in 2022, by gaining access to current and archival content from a variety of reliable sources.
The announcement of this purchase boosted News Corp's market performance, with shares increasing almost 4 per cent in after-hours trading.
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(With inputs from Reuters)