Microsoft and OpenAI Invest $10 Million to Boost AI in Local Newsrooms

Microsoft and OpenAI are teaming up to invest $10 million into an AI-driven fellowship program that aims to boost local journalism through cutting-edge technology. The program, operated by the Lenfest Institute, will help five major U.S. news organizations explore how AI can support both editorial efforts and business sustainability in the news industry.

Largest Local News AI Collaborative Launched

This initiative represents the largest effort to date focusing on the integration of AI into local news. Jim Friedlich, executive director and CEO of the Lenfest Institute, emphasized the significance of the project, stating, "The scale, we think, is significant." The collaboration brings together OpenAI, Microsoft, and the Lenfest Institute’s Local Independent News Coalition (LINC), which consists of eight large, independently owned metro news outlets.

The initial $10 million funding, split equally between OpenAI and Microsoft, will be used to support AI experimentation in local newsrooms. The money includes $5 million in grants and $5 million in enterprise credits for cloud and AI tools, like Microsoft Azure and OpenAI’s models. Each of the five selected outlets will receive $500,000 to hire a two-year AI fellow and develop AI-powered tools tailored to local journalism needs.

Newsrooms Benefiting from AI Fellowship

The first round of grantees includes:

• The Philadelphia Inquirer: Building a conversational AI search interface for its archives.

• The Seattle Times: Utilizing AI to enhance advertising analytics and sales support.

• Chicago Public Media (including WBEZ and The Chicago Sun-Times): Using AI for transcription, summaries, and translations.

• Minnesota Star Tribune: Exploring AI-driven summarization, analysis, and content discovery.

• Newsday: Creating AI-based public data summarization and aggregation tools for newsroom use, readers, and marketing partners.

Three additional newsrooms will be chosen for the program in the coming months as part of a second round of funding. These grants are intended to help news organizations share their AI learnings with others, accelerating AI innovation across the industry.

The Program's Impact on Local Journalism

The project aims to help local newsrooms develop sustainable business models at a time when local journalism is struggling financially. OpenAI and Microsoft hope that AI tools will drive innovation and efficiency, freeing up resources for more impactful journalism. “The Collective puts the notion of a live lab on steroids,” said Friedlich, noting how embedded engineers and open sharing across outlets will allow rapid replication of successful AI applications.

OpenAI’s chief of intellectual property and content, Tom Rubin, highlighted the company’s commitment to supporting smaller news outlets. “We are deeply invested in supporting smaller, independent publishers,” Rubin stated, adding that the goal is to ensure these organizations have access to the same advanced tools as larger news entities.

Teresa Hutson, corporate vice president, technology for fundamental rights at Microsoft, emphasized the critical role of local journalism. "We need local journalism to inform and educate citizens, expose wrongdoing, and encourage civic engagement," Hutson said.

Microsoft and OpenAI's Broader Role in the News Industry

While OpenAI has been actively striking licensing deals with national news outlets, including Hearst and Vox Media, it has also been extending support to local newsrooms. Earlier, it committed over $5 million to the American Journalism Project.

Microsoft, through its Democracy Forward initiative, is also playing a pivotal role by providing grants, software, and engineering support from its CTO’s office. Despite ongoing copyright lawsuits against both companies from major outlets like The New York Times and The Chicago Tribune, this new initiative demonstrates a sincere effort to support the sustainability of journalism.

AiNews.com's Synergy with AI in Journalism

At AiNews.com, our goal aligns closely with these efforts, as we aim to help local newsrooms incorporate AI into their workflows in a way that is both easy and responsible. We aim to empower local journalists by demonstrating real-world examples of AI's potential to enhance content creation, improve efficiency, and foster sustainable business models. Through education and support, we strive to make AI technology accessible to every newsroom, ensuring that it strengthens journalism rather than replacing its core values. Our commitment is to ensure AI supports and enhances journalism, just as this collaborative aims to do for local media across the country.

Looking Ahead: Advancing AI in Newsrooms

As AI continues to evolve, its application in local journalism could revolutionize the industry. From streamlining content production to providing better business tools, this initiative could help solve some of the major challenges faced by local media outlets.

Local news plays a crucial role in society by keeping citizens informed, exposing wrongdoing, and fostering civic engagement. This investment in AI technology will go a long way toward ensuring that local journalism can remain sustainable and continue to serve communities for years to come.