News Corp signs agreement with Open AI: 250 million for content and archive

News Corp has struck a deal with OpenAI, the company that developed ChatGpt, which according to the Wall Street Journal, which is part of the Ruperth Murdoch galaxy, could be worth more than $250 million over five years.

OpenAI would use News Corp's content, including archives, to answer users' questions and train its technology. Included in the transaction is compensation for the use of OpenAI's technology.

The agreement is significant for a number of reasons, mainly two: a major publisher decides to make a deal with the largest producer of generative artificial intelligence technology by granting it content in return for a significant commercial agreement, probably the largest to date. Secondly, the availability of the content of the News Corp group, whose publications include Dow Jones, HarperCollins, New York Post, The Sun, and The Times, will allow the chatbot better and more complete responses.

"The pact recognises that there is a premium for premium journalism," News Corp CEO Robert Thomson said in a note to employees. "The digital age has been characterised by the dominance of distributors, often at the expense of creators, and many media companies have been swept up in a ruthless wave of technology. It is now up to us to make the most of this providential opportunity."

The News Corp-OpenAI deal is the latest example of the different approaches taken by publishers trying to deal with the rise of generative artificial intelligence.