In a landmark agreement between Google and California lawmakers, a substantial fund nearing $250 million will be distributed over the next five years to support the state’s newsrooms and foster advancements in artificial intelligence (AI) within the journalism sector. This deal concludes a prolonged debate over the need for tech giants to compensate the news industry, particularly impacting small business owners and solopreneurs in media.
California Assemblymember Buffy Wicks’s office outlined that of the total funding, $180 million is earmarked directly for California newsrooms, while $62.5 million will be allocated to a novel AI program. Governor Gavin Newsom praised the deal, stating, “This agreement represents a major breakthrough in ensuring the survival of newsrooms and bolstering local journalism across California — leveraging substantial tech industry resources without imposing new taxes on Californians.”
The state’s contribution includes \$30 million to a newly established journalism fund in its inaugural year, followed by \$10 million annually over the next four years. Google will complement this with $15 million in the first year and $10 million yearly thereafter. Additionally, Google plans to continue supporting its existing journalism programs like Google Showcase and Google News Initiative with an annual fund of $10 million, and up to $5 million yearly towards AI for journalism, with technology contributions from ChatGPT maker OpenAI.
Moreover, the creation of a National AI Accelerator, to which Google will contribute \$10 million annually, aims to stimulate AI innovation. Another $2.5 million is designated for AI research funding.
Kent Walker, president of global affairs and chief legal officer for Google’s parent company Alphabet, emphasized the collaborative nature of the framework: “This public-private partnership builds on our long history of working with journalism and the local news ecosystem in our home state, while developing a national center of excellence on AI policy.”
The resolution effectively replaces a contentious state bill demanding significant tech firms to pay for news content. Despite its ambition to rejuvenate local journalism, the deal has sparked criticism within the industry. The Media Guild of the West expressed its disapproval, stating, “After two years of advocacy for strong antimonopoly action to start turning around the decline of local newsrooms, we are left almost without words.” The statement also criticized the deal’s lack of transparency and minimal commitments from Google, stressing, “Not a single organization representing journalists and news workers agreed to this undemocratic and secretive deal with one of the businesses destroying our industry.”
This pivotal agreement marks a significant shift in the relationship between technology and journalism, posing potential benefits and challenges for smaller entities in the news sector striving to adapt to digital transformations.
