OpenAI, led by Sam Altman, has signed an agreement to access content from major news publications owned by media conglomerate News Corp (NWSA.O), the companies announced on Wednesday. This deal follows a recent agreement by the Microsoft-backed (MSFT.O) AI giant to license content from the Financial Times for AI model development.
Having access to extensive data will help enhance the output of OpenAI’s ChatGPT, a chatbot capable of generating human-like responses and summarizing long texts. These partnerships are vital for training AI models and can also be profitable for news publishers, who have traditionally missed out on the profits that internet giants earn from distributing their content.
OpenAI, which sparked an AI revolution with the launch of its chatbot in 2022, had also secured a content agreement with social media platform Reddit (RDDT.N) last week.
While OpenAI did not reveal the financial details of its latest deal, the Wall Street Journal, owned by News Corp, reported that it could be worth more than $250 million over five years. The agreement includes a provision ensuring that the content will not be available on ChatGPT immediately after it is published on any of the news websites, according to the WSJ report.
The deal grants OpenAI access to current and archived content from various News Corp publications, including the Wall Street Journal, MarketWatch, the Times, and others. Following the announcement, News Corp shares rose about 4% after hours.
