News Corp Declares Media as a Key Resource for AI Following $50 Million Content Agreement with Meta

In recent developments, the global chief executive of News Corp, Robert Thomson, emphasized the indispensable role of news organizations as critical “inputs” for the burgeoning field of artificial intelligence. This insight comes on the heels of News Corp signing a significant AI content licensing agreement valued at USD 50 million annually with Meta.

During a recent presentation, Thomson expressed optimism regarding the relationship between quality journalism and AI, highlighting that the breaking news and information provided by reputable publications such as the Australian, the Times of London, and Dow Jones offers an unrivaled “input” for AI algorithms. He noted that this content is indeed “hard to beat” for training virtual intelligence models.

The groundbreaking Meta agreement, as first disclosed by the Murdoch-owned Wall Street Journal earlier in the week, will grant Meta, the parent company of both Facebook and Instagram, permission to utilize News Corp’s content from the United States and the United Kingdom in order to enhance its artificial intelligence products.

Included within this arrangement is notable content from outlets like the Journal and the New York Post; however, it is critical to mention that the Australian newspapers, such as the Daily Telegraph and the Herald Sun, are excluded from this deal. Thomson elaborated on the company’s identity, asserting, “We’re essentially an input company,” during his address at a Morgan Stanley tech conference in San Francisco on March 2, ahead of the Meta transaction.

He articulated a perspective in which the looming risk in the era of AI is primarily directed at what he referred to as “output companies.” To clarify his point, he stated, “We’re an input in the same way that semiconductors are an input, just as data centers are an input, and similarly, energy serves as an input.” He urged observers to consider the value of breaking news as well as unique real estate information that propels the media landscape forward.

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Thomson, who has notably inked a $250 million, five-year agreement with OpenAI earlier in 2024, expressed his belief that the advantages posed by AI far outweigh any potential drawbacks for news organizations. He encapsulated his approach succinctly as a “woo or sue” strategy — characterized by a welcoming stance towards partnerships with AI companies but also a readiness to engage in legal action if those companies misuse or unlawfully exploit any of the publisher’s content.

Engagement with influential figures in the tech realm is another cornerstone of Thomson’s strategy, as he maintains a fruitful relationship with OpenAI’s chief executive, Sam Altman, with whom he communicates frequently. He similarly highlighted his ongoing dialogue with Mark Zuckerberg, the CEO of Meta. “Mark and I converse on a pretty regular basis, across WhatsApp, obviously,” he shared.

In the Australian context, there has been a noticeable pivot in News Corp’s approach towards social media firms, adopting a more confrontational posture. The organization has placed responsibility on these platforms for contributing to social cohesion challenges around the world.

Michael Miller, the executive chair of News Corp Australia, has advocated for a cohesive response from the media industry against platforms and AI developers who seek unremunerated access to content.

Additionally, News Corp has also started to harness AI technology within its journalistic processes. The Australian branch has launched an in-house AI tool called “NewsGPT,” although this has raised some concerns among journalists regarding its implications for the profession.

The integration of artificial intelligence into the news media landscape has spurred fears that it may jeopardize the viability of traditional journalism. With AI tools being integrated into search engines, there has been a noticeable decline in the traffic to news websites, impacting revenue and audience engagement.

As mentioned earlier, the 2024 agreement with the AI development firm OpenAI facilitated the incorporation of content from prominent outlets including the Journal, the Post, the Times, and the Sunday Times into OpenAI’s ecosystem.

Conversely, some publications have pursued legal avenues as a means for recourse, exemplified by the New York Times, which has opted to file a lawsuit against OpenAI and its primary benefactor, Microsoft, aiming to contest the unauthorized use of its content to enrich generative AI and large language models.

Notably, Meta has committed to significant investments in AI infrastructure, recently announcing an ambitious deal potentially exceeding USD 6 billion with Corning, aimed at securing fibre optic cables necessary for enhancing their datacenters, further underlining their commitment to AI development.