OpenAI strikes $250 million deal with News Corp to train its AI models

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In a multi-million dollar move, OpenAI has struck a $250 million deal with a major publication conglomerate News Corp, allowing it to use licensed journalistic content from its platform to train the next generations of Generative AI bots.

In a move that brings mixed responses from the tech community, ChatGPT-famed OpenAI (also a Microsoft company) will harness the repository of journalistic content sourced from various assets under News Corp including but not limited to The Wall Street Journal, The Times, The Sun, News UK and a few other publishers. The deal is worth a smashing $250 million and has a tenure of over five years.

Earlier, developers would train their AI models on publicly scrapped data without any consent from the original publishers. That’s why The New York Times has an ongoing lawsuit filed against OpenAI and Microsoft. 

Circling to the story, partnering with publishers allows AI developers to steer clear of legal challenges as well as get hands-on licensed content spread across a spectrum of topics that they can use to train their AI. Having such a diverse and enormous dataset allows developers to train AI to respond better while throwing some kickbacks to respective news publishers by citing them in the search results. 

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After the announcement, Sam Altman of OpenAI (CEO), expressed his excitement and was quoted saying “proud moment for journalism and technology”. News Corp’s CEO Tober Thomson was overjoyed with the announcement too hailing it as a way forward for “AI to uphold the standards of world-class journalism”. 

Training AI on set datasets improves its capabilities without putting AI companies into any financial or legal dilemma. It’s not just News Corp but earlier, OpenAI partnered with Axel Springer later last year.

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