In a bold move, News Corp's global CEO has positioned news organizations as an essential 'input' for artificial intelligence, signing a lucrative deal with Meta. This development raises intriguing questions about the role of media in the AI era.
The Future of News: Input or Output?
News Corp's CEO, Robert Thomson, sees his company as an 'input company,' providing valuable data to train AI models. But here's where it gets controversial: Thomson believes news organizations like his own are at risk in the age of AI, especially those focused on 'output.'
In a recent presentation, Thomson highlighted the unique value of News Corp's publications, including the Australian, the Times of London, and Dow Jones, as an 'input' for AI. He believes the reliable, breaking news and information these outlets provide is hard to beat.
The Meta deal, worth up to US$50 million annually, allows Meta to access and utilize News Corp's US and UK content to train its AI products. This includes publications like the Wall Street Journal and the New York Post. However, the Australian mastheads are notably absent from this agreement.
Thomson's comments reflect a broader strategy within News Corp. While the company has embraced AI in its journalism, with the introduction of an in-house tool called NewsGPT, it has also taken a more adversarial approach to social media and AI companies seeking content for free.
In Australia, News Corp has called for a united front against these platforms, blaming them for social cohesion issues. Michael Miller, executive chair of News Corp Australia, has been vocal about the need for media organizations to protect their content.
This stance contrasts with News Corp's international approach, which involves licensing deals with AI companies like OpenAI and Meta. Thomson's 'woo or sue' strategy seems to be working, as he has successfully negotiated deals while also threatening legal action if content is used illegally.
The integration of AI into search engines, particularly Google's use of AI in search, has reduced the number of clicks into news websites, posing a threat to the sustainability of professional journalism.
News Corp's deal with OpenAI in 2024 brought content from various publications, including the Times and the Sunday Times, to the ChatGPT platform. This move highlights the company's willingness to adapt and explore new opportunities in the AI space.
However, not all media organizations share this view. The New York Times, for example, has taken a different approach, suing OpenAI and its key backer, Microsoft, over the use of its content to train generative 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.
As AI continues to shape the media landscape, the question remains: Will news organizations like News Corp thrive as 'input companies,' or will they need to adapt their strategies to survive in an AI-dominated world?
What's your take on this? Do you think news organizations should embrace AI as an opportunity, or should they be more cautious and protective of their content? Let's discuss in the comments!
