In a bold move, News Corp's global CEO has positioned news organizations as vital 'inputs' for artificial intelligence, signing a groundbreaking deal with Meta. This deal, worth up to $50 million annually, allows Meta to access and utilize News Corp's content for AI training. But here's where it gets controversial... News Corp, led by CEO Robert Thomson, sees itself as an 'input company', providing valuable data for AI development. Thomson believes that reliable, breaking news from publications like the Australian and the Times of London is an invaluable resource for AI.
The Meta deal, revealed by the Wall Street Journal, will last for at least three years, enabling Facebook and Instagram's parent company to tap into News Corp's US and UK content. However, not all of News Corp's outlets are part of this agreement; the Australian mastheads, including the Daily Telegraph and Herald Sun, are notably absent.
Thomson emphasizes the importance of news organizations in the age of AI, comparing them to other essential inputs like semiconductors and datacenters. He highlights the unique value of breaking news and real estate information as key 'inputs' for AI.
In 2024, Thomson signed a significant deal with OpenAI, further emphasizing his belief in the opportunities AI presents for news organizations. He adopts a 'woo or sue' strategy, welcoming collaborations but also taking legal action if content is used illegally.
Thomson has close relationships with key AI industry figures, including Sam Altman of OpenAI and Mark Zuckerberg of Meta. He regularly communicates with both CEOs, showcasing his proactive approach to AI partnerships.
In contrast, News Corp Australia has taken a more adversarial stance towards social media companies, blaming them for social cohesion issues. Executive Chair Michael Miller has called for media unity against platforms seeking free content.
News Corp itself has embraced AI in its journalism, introducing an in-house tool called 'NewsGPT', which has raised concerns among some journalists.
The integration of AI into search engines, particularly Google's use of AI in search, has been seen as a threat to professional journalism's sustainability. The number of people clicking through to news websites has decreased due to AI-powered search results.
News Corp's 2024 deal with OpenAI brought content from various publications, including the Journal, the Post, and the Times, to the ChatGPT platform. This move contrasts with the approach taken by publications like the New York Times, which has sued OpenAI and Microsoft over the use of its content to train AI systems.
Meta, too, has made significant investments in AI infrastructure, announcing a multi-billion-dollar deal with Corning to supply fiber optic cables for its datacenters.
The future of news organizations in the AI landscape remains a topic of debate, with differing strategies and opinions. What do you think? Should news organizations embrace AI partnerships, or should they be more cautious? Share your thoughts in the comments!
