Google’s $172M Deal Supports California Newsrooms, Funds AI Program

State lawmakers in California have decided to drop a proposal that would have required tech giants like Google to pay news companies for using their content. Instead, they've reached an agreement where Google will contribute $172 million to support local media outlets and start an artificial intelligence (AI) program.

The $175 Million Support for Local Journalism

Announced yesterday, the agreement marks the first of its kind in the nation, with $175 million set aside to bolster local journalism across California over the next five years. This deal is a significant shift from the initial bill proposed by news publishers and media unions, which aimed to force Google and Meta to negotiate usage fees directly with news outlets.

Fund Distribution and AI Accelerator Program

Under the new agreement, Google will deposit $55 million over five years into a fund managed by UC Berkeley, specifically for distribution to local newsrooms. The state will also contribute $70 million over the same period, and Google will continue its existing grants to newsrooms, amounting to $10 million each year. Additionally, Google will contribute $12.5 million annually towards an AI accelerator program, sparking concerns among labor advocates about potential job losses.

The AI accelerator program is set to introduce innovative tools designed to assist journalists in accessing and analyzing public information more effectively. These tools aim to streamline investigative reporting and enhance the ability to uncover critical stories from complex data sets. Julie Makinen, board chairperson of the California News Publishers Association, emphasized the importance of transparency, stating that "more details of the program need to be made public as soon as possible." She also expressed a strong desire to see a larger portion of these resources directed toward supporting publishers, ensuring that the benefits of AI technology directly contribute to the sustainability of local newsrooms.

Mixed Reactions from Media and Lawmakers

Publishers who initially pushed for the payment proposal see this deal as a positive step, though not entirely what they had hoped for. The UC Berkeley fund will be overseen by news industry groups, ensuring that the money is distributed according to the number of journalists employed at each publication, with some reserved for smaller or ethnic media outlets.

However, not everyone is satisfied. Media workers' unions and some lawmakers have expressed concerns that the deal lacks sufficient funding and does not adequately address the challenges facing the industry. The deal replaces two bills that aimed to secure tech money to support California’s struggling local news industry.

The Role of Google and Tech Companies

The negotiation process over the summer saw tech companies like Google doubling down on their threats to stop linking to news sites in California if the bills passed. In the end, the agreement allowed tech companies to avoid the bills they opposed while providing five years of support to local newsrooms. The deal is similar to one Google made in France over a decade ago, where it created a digital publishing innovation fund.

Concerns Over the AI Program and Future of Journalism

The AI program included in the deal is designed to give businesses, nonprofits, and researchers resources to experiment with AI to address various challenges, including those related to journalism. However, media guilds have raised concerns that this could lead to further job losses in journalism.

While some see the deal as a necessary compromise to prevent tech platforms from refusing to link to news articles, others worry it may increase the industry's reliance on tech companies.

This agreement represents a significant moment in the ongoing conversation about the future of journalism and the role of technology in supporting it, particularly as AI continues to shape the landscape.