News Corp (NWSA.O) and OpenAI Forge $250 Million Content Partnership

Key Points

• News Corp (NWSA) and OpenAI have entered a $250 million content-licensing agreement over five years.
• The partnership will provide OpenAI access to current and archived content from News Corp's publications to enhance AI technologies like ChatGPT.
• This deal is part of a growing trend of AI companies partnering with news publishers to access authoritative data for training AI models.

In this news

News Corporation Class A Common Stock (NWSA), the owner of renowned publications like The Wall Street Journal, has entered into a groundbreaking content-licensing agreement with OpenAI, an artificial intelligence company led by Sam Altman. Announced recently, the deal is valued at over $250 million and spans five years. This partnership will grant OpenAI access to a wealth of content from News Corp's consumer news publications, including both current and archived materials, to enhance its AI technologies such as ChatGPT.

The financial arrangement includes both cash compensation and credits for utilizing OpenAI's technology. This collaboration aims to leverage News Corp's extensive journalistic expertise to ensure high standards in AI-generated content. OpenAI's CEO, Sam Altman, expressed enthusiasm about the partnership, highlighting its potential to improve user access to quality reporting and uphold journalism standards in the digital age.

This deal is part of a broader trend of AI companies partnering with news publishers to access authoritative data for training AI models. Prior to this, OpenAI had similar agreements with the Financial Times and Reddit. The partnership with News Corp is seen as a significant revenue source for the struggling news industry, providing a much-needed financial boost while also setting a precedent for future collaborations between AI firms and media companies.