California Strikes Groundbreaking Deal with Tech Giants to Support Journalism and AI Research
California is the first to establish a revolutionary partnership with technology companies to provide support for AI research and journalism. The agreement includes a US$250 million investment over a five-year period, with an emphasis on AI research and journalism organisations. The agreement is praised by Governor Newsom as essential for the preservation of newsrooms and the enhancement of local journalism.
This deal, announced on Wednesday, would result in a combined investment of over $250 million over five years to support California-based news outlets and launch an AI research project. The funding is slated to begin in 2025, with an initial US$100 million set aside for the first year, with the majority going to journalistic organisations, according to Democratic Assemblymember Buffy Wicks, the deal's architect.
The agreement was praised by Governor Gavin Newsom as a significant advancement in the protection of newsrooms and the improvement of local journalism in California. He underscored the significance of utilising significant resources from the technology sector without imposing additional taxes on Californians. The agreement is intended to not only provide financial assistance for the recruitment of a large number of journalists, but also to revitalise and fortify California's press corps, thereby emphasising the critical role of journalism in the preservation of democracy.
Although the state's financial contribution, eligible news organisations, and the allocation for the AI research program are not yet disclosed, this groundbreaking agreement represents the resolution of a year-long dispute between tech giants and legislators over Wicks' initial proposal. The proposal aimed to compel companies such as Google, Facebook, and Microsoft to allocate a specific percentage of their advertising revenue to media organisations in exchange for linking to their content. This is similar to legislation that was implemented in Canada to provide financial support to local news outlets.
Assembly member Wicks praised the partnership as a collaborative endeavour to empower local news entities across the state to continue their essential work, thereby supporting a free and flourishing press. She expressed confidence that this agreement represents the mere commencement of a new era for journalism in California.
The California News Publishers Association, which represents over 700 news organisations, has extended its support in response to the agreement, as have Google's parent company Alphabet and OpenAI. Nevertheless, critics, including journalists from the Media Guild of the West, have expressed apprehension regarding the agreement, arguing that it could have a detrimental impact on the news landscape of California.
Steve Glazer, a state senator who introduced a bill that proposed tax allowances for news organisations that hired full-time journalists, criticised the agreement for undermining efforts to secure a sustainable solution for independent journalism. State Senate President Pro Tempore Mike McGuire reiterated these sentiments, asserting that the agreement fails to adequately address the urgent issues confronting California's news industry.
California pioneers a groundbreaking deal with tech firms to support journalism and AI research.
The agreement entails a $250 million investment over five years, with a focus on news organisations and AI research.
Governor Newsom lauds the deal as crucial for preserving newsrooms and strengthening local journalism.
Source: AP NEWS