AI

OpenAI’s deals with publishers could spell trouble for rivals

Comment

Illustration depicting OpenAI's logo over a flower
Image Credits: Bryce Durbin/TechCrunch

OpenAI’s legal battle with The New York Times over data to train its AI models might still be brewing. But OpenAI’s forging ahead on deals with other publishers, including some of France’s and Spain’s largest news publishers.

OpenAI on Wednesday announced that it signed contracts with Le Monde and Prisa Media to bring French and Spanish news content to OpenAI’s ChatGPT chatbot. In a blog post, OpenAI said that the partnership will put the organizations’ current events coverage — from brands including El País, Cinco Días, As and El Huffpost — in front of ChatGPT users where it makes sense, as well as contribute to OpenAI’s ever-expanding volume of training data.

OpenAI writes:

Over the coming months, ChatGPT users will be able to interact with relevant news content from these publishers through select summaries with attribution and enhanced links to the original articles, giving users the ability to access additional information or related articles from their news sites … We are continually making improvements to ChatGPT and are supporting the essential role of the news industry in delivering real-time, authoritative information to users.

So, OpenAI’s revealed licensing deals with a handful of content providers at this point. Now felt like a good opportunity to take stock:

  • Stock media library Shutterstock (for images, videos and music training data)
  • The Associated Press
  • Axel Springer (owner of Politico and Business Insider, among others)
  • Le Monde
  • Prisa Media

How much is OpenAI paying each? Well, it’s not saying — at least not publicly. But we can estimate.

The Information reported in January that OpenAI was offering publishers between $1 million and $5 million a year to access archives to train its GenAI models. That doesn’t tell us much about the Shutterstock partnership. But on the article licensing front — assuming The Information’s reporting is accurate and those figures haven’t changed since then — OpenAI’s shelling out between $4 million and $20 million a year for news.

That might be pennies to OpenAI, whose war chest sits at over $11 billion and whose annualized revenue recently topped $2 billion (per Financial Times). But as Hunter Walk, a partner at Homebrew and the co-founder of Screendoor, recently mused, it’s substantial enough to potentially edge out AI rivals also pursuing licensing agreements.

Walk writes on his blog:

[I]f experimentation is gated by nine figures worth of licensing deals, we are doing a disservice to innovation … The checks being cut to ‘owners’ of training data are creating a huge barrier to entry for challengers. If Google, OpenAI, and other large tech companies can establish a high enough cost, they implicitly prevent future competition.

Now, whether there’s a barrier to entry today is debatable. Many — if not most — AI vendors have chosen to risk the wrath of IP holders, opting not to license the data on which they’re training AI models. There’s evidence that art-generating platform Midjourney, for example, is training on Disney movie stills — and Midjourney has no deal with Disney.

The tougher question to wrestle with is: Should licensing simply be the cost of doing business and experimentation in the AI space?

Walk would argue not. He advocates for a regulator-imposed “safe harbor” that’d protect any AI vendor — as well as small-time startups and researchers — from legal liability so long as they abide by certain transparency and ethical standards.

Interestingly, the U.K. recently tried to codify something along those lines, exempting the use of text and data mining for AI training from copyright considerations so long as it’s for research purposes. But those efforts ended up falling through.

Me, I’m not sure I’d go so far as Walk in his “safe harbor” proposal considering the impact AI threatens to have on an already-destabilized news industry. A recent model from The Atlantic found that if a search engine like Google were to integrate AI into search, it’d answer a user’s query 75% of the time without requiring a click-through to its website.

But perhaps there is room for carve-outs.

Publishers should be paid — and paid fairly. Is there not an outcome, though, in which they’re paid and challengers to AI incumbents — as well as academics — get access to the same data as those incumbents? I should think so. Grants are one way. Larger VC checks are another.

I can’t say I have the solution, particularly given that the courts have yet to decide whether — and to what extent — fair use shields AI vendors from copyright claims. But it’s vital we tease these things out. Otherwise, the industry could well end up in a situation where academic “brain drain” continues unabated and only a few powerful companies have access to vast pools of valuable training sets.

More TechCrunch

Featured Article

CIOs’ concerns over generative AI echo those of the early days of cloud computing

CIOs trying to govern generative AI have the same concerns they had about cloud computing 15 years ago, but they’ve learned some things along the way.

1 hour ago
CIOs’ concerns over generative AI echo those of the early days of cloud computing

It sounds like the latest dispute between Apple and Fortnite-maker Epic Games isn’t over. Epic has been fighting Apple for years over the company’s revenue-sharing requirements in the App Store.…

Epic Games CEO promises to ‘fight’ Apple over ‘absurd’ changes

As deep-pocketed companies like Amazon, Google and Walmart invest in and experiment with drone delivery, a phenomenon reflective of this modern era has emerged. Drones, carrying snacks and other sundries,…

What happens if you shoot down a delivery drone?

A police officer pulled over a self-driving Waymo vehicle in Phoenix after it ran a red light and pulled into a lane of oncoming traffic, according to dispatch records. The…

Waymo robotaxi pulled over by Phoenix police after driving into the wrong lane

Welcome back to TechCrunch’s Week in Review — TechCrunch’s newsletter recapping the week’s biggest news. Want it in your inbox every Saturday? Sign up here. This week, Figma CEO Dylan…

Figma pauses its new AI feature after Apple controversy

We’ve created this guide to help parents navigate the controls offered by popular social media companies.

How to set up parental controls on Facebook, Snapchat, TikTok and more popular sites

Featured Article

You could learn a lot from a CIO with a $17B IT budget

Lori Beer’s work is a case study for every CIO out there, most of whom will never come close to JP Morgan Chase’s scale, but who can still learn from how it goes about its business.

23 hours ago
You could learn a lot from a CIO with a $17B IT budget

For the first time, Chinese government workers will be able to purchase Tesla’s Model Y for official use. Specifically, officials in eastern China’s Jiangsu province included the Model Y in…

Tesla makes it onto Chinese government purchase list

Generative AI models don’t process text the same way humans do. Understanding their “token”-based internal environments may help explain some of their strange behaviors — and stubborn limitations. Most models,…

Tokens are a big reason today’s generative AI falls short

After multiple rejections, Apple has approved Fortnite maker Epic Games’ third-party app marketplace for launch in the EU. As now permitted by the EU’s Digital Markets Act (DMA), Epic announced…

Apple approves Epic Games’ marketplace app after initial rejections

There’s no need to worry that your secret ChatGPT conversations were obtained in a recently reported breach of OpenAI’s systems. The hack itself, while troubling, appears to have been superficial…

OpenAI breach is a reminder that AI companies are treasure troves for hackers

Welcome to Startups Weekly — TechCrunch’s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. Most…

Space for newcomers, biotech going mainstream, and more

Elon Musk’s X is exploring more ways to integrate xAI’s Grok into the social networking app. According to a series of recent discoveries, X is developing new features like the…

X plans to more deeply integrate Grok’s AI, app researcher finds

We’re about four months away from TechCrunch Disrupt 2024, taking place October 28 to 30 in San Francisco! We could not bring you this world-class event without our world-class partners…

Meet Brex, Google Cloud, Aerospace and more at Disrupt 2024

In its latest step targeting a major marketplace, the European Commission sent Amazon another request for information (RFI) Friday in relation to its compliance under the bloc’s rulebook for digital…

Amazon faces more EU scrutiny over recommender algorithms and ads transparency

Quantum Rise, a Chicago-based startup that does AI-driven automation for companies like dunnhumby (a retail analytics platform for the grocery industry), has raised a $15 million seed round from Erie…

Quantum Rise grabs $15M seed for its AI-driven ‘Consulting 2.0’ startup

On July 4, YouTube released an updated eraser tool for creators so they can easily remove any copyrighted music from their videos without affecting any other audio such as dialog…

YouTube’s updated eraser tool removes copyrighted music without impacting other audio

Airtel, India’s second-largest telecom operator, on Friday denied any breach of its systems following reports of an alleged security lapse that has caused concern among its customers. The telecom group,…

India’s Airtel dismisses data breach reports amid customer concerns

According to a recent Dealroom report on the Spanish tech ecosystem, the combined enterprise value of Spanish startups surpassed €100 billion in 2023. In the latest confirmation of this upward trend, Madrid-based…

Spain’s exposure to climate change helps Madrid-based VC Seaya close €300M climate tech fund

Forestay, an emerging VC based out of Geneva, Switzerland, has been busy. This week it closed its second fund, Forestay Capital II, at a hard cap of $220 million. The…

Forestay, Europe’s newest $220M growth-stage VC fund, will focus on AI

Threads, Meta’s alternative to Twitter, just celebrated its first birthday. After launching on July 5 last year, the social network has reached 175 million monthly active users — that’s a…

A year later, what Threads could learn from other social networks

J2 Ventures, a firm led mostly by U.S. military veterans, announced on Thursday that it has raised a $150 million second fund. The Boston-based firm invests in startups whose products…

J2 Ventures, focused on military healthcare, grabs $150M for its second fund

HealthEquity said in an 8-K filing with the SEC that it detected “anomalous behavior by a personal use device belonging to a business partner.”

HealthEquity says data breach is an ‘isolated incident’

Roll20 said that on June 29 it had detected that a “bad actor” gained access to an account on the company’s administrative website for one hour.

Roll20, an online tabletop role-playing game platform, discloses data breach

Fisker has a willing buyer for its remaining inventory of all-electric Ocean SUVs, and has asked the Delaware Bankruptcy Court judge overseeing its Chapter 11 case to approve the sale.…

Fisker asks bankruptcy court to sell its EVs at average of $14,000 each

Teddy Solomon just moved to a new house in Palo Alto, so he turned to the Stanford community on Fizz to furnish his room. “Every time I show up to…

Fizz, the anonymous Gen Z social app, adds a marketplace for college students

With increasing competition for what is, essentially, still a small number of hard tech and deep tech deals, Sidney Scott realized it would be a challenge for smaller funds like…

Why deep tech VC Driving Forces is shutting down

A guide to turn off reactions on your iPhone and Mac so you don’t get surprised by effects during work video calls.

How to turn off those silly video call reactions on iPhone and Mac

Amazon has decided to discontinue its Astro for Business device, a security robot for small- and medium-sized businesses, just seven months after launch.  In an email sent to customers and…

Amazon retires its Astro for Business security robot after only 7 months

Hiya, folks, and welcome to TechCrunch’s regular AI newsletter. This week in AI, the U.S. Supreme Court struck down “Chevron deference,” a 40-year-old ruling on federal agencies’ power that required…

This Week in AI: With Chevron’s demise, AI regulation seems dead in the water