Thursday, June 20, 2024

OpenAI signs content deal with new Corp

Sam Altman-led OpenAI has signed a deal granting it access to content from major news publications owned by media conglomerate News Corp, the companies announced on Wednesday. This follows a recent agreement by the Microsoft-backed AI giant to license content from the Financial Times for AI model development. Access to extensive data can enhance the content generated by OpenAI’s ChatGPT, enabling it to produce human-like responses to prompts and summarize long texts effectively.

Such partnerships are crucial for the training of AI models and can be lucrative for news publishers, who have traditionally been excluded from the profits internet giants earn from distributing their content. OpenAI, which ignited the AI frenzy with the launch of its chatbot in 2022, also secured a content deal with social media platform Reddit last week.

OpenAI did not disclose the financial details of its latest deal, but the Wall Street Journal, owned by News Corp, reported that it could be worth more than $250 million over five years. The agreement also ensures that content will not become available on ChatGPT immediately after being published on one of the news websites, according to the WSJ report.

The agreement will grant OpenAI access to both current and archived content from various News Corp publications, such as the Wall Street Journal, MarketWatch, the Times, and others. Following the announcement, News Corp shares surged approximately 4% after the market closed.

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