.st0{fill:#FFFFFF;}

OpenAI and Axel Springer: Unpacking the Deal’s Impact on Journalists and Digital Media 

 December 24, 2023

By  Joe Habscheid

Summary: In an unprecedented move, OpenAI and publishing giant Axel Springer have entered into a multi-year licensing agreement that has raised eyebrows and questions in the media industry. With no consultation with the journalists involved and potential implications for individual writers and digital advertising revenue, we delve into the finer details of this game-changing deal.


The OpenAI and Axel Springer Deal

An unexpected alliance between OpenAI, a prominent Artificial Intelligence company, and Axel Springer, a leading digital publisher, has given birth to a new paradigm in AI training data acquisition. The multi-year agreement allows OpenAI to incorporate articles from Axel Springer-owned outlets into its products, including ChatGPT. This move signals a departure from traditional web scraping to fetch training data. Now OpenAI is paying for contents as a trusted source.

How Journalists Discovered the Deal

But this leveraging of journalistic work didn’t involve the consultation of the reporters themselves. Employees of Business Insider came to know about this deal at the identical time as its public release. The union PEN Guild, representing Politico and E&E News employees, expressed strong concerns about not being consulted or informed about such a crucial decision.

Impact on Journalists

In response to this, writer advocacy groups are proposing collective licensing agreements to ensure writers are duly compensated when their work is used as training data. Yet, fears persist about the ramifications on individual writers and the potential decrease in traffic-driven digital advertising revenue for news outlets. The line of labor leaders monitoring these deals suggests an evolving conversation around the rights and compensation of journalists in the AI era.

Revenue Sharing Opportunities for Journalists

Despite the uncertainty, there might be opportunities for revenue-sharing and compensation agreements even in unionized newsrooms. Still, the puzzle of whether the deal includes provisions for individual journalists’ compensation remains unsolved.

Potential Long-Term Impact and the Role of AI in Media

There’s also uncertainty about the long-term impact of AI services on the media industry. The rising popularity of consuming news within AI tools might affect the number of readers clicking on articles, arguably leading to a new media crisis. On the other hand, Axel Springer sees the partnership as an opportunity to familiarize new audiences with journalists’ work. Yet, there’s a growing sentiment that the resulting benefits might not trickle down into journalists’ paychecks or simplify their jobs.

Conclusion: This remarkable deal undoubtedly heralds a new era for future partnerships between large AI firms and media organizations. Yet, it’s vital that the interests of journalists and their rights to compensation and opting out from such arrangements are duly acknowledged and accommodated in these discussions. After all, they are the original creators whose efforts and talents serve as the lifeblood of these stories.

#OpenAIandAxelSpringer #AIinMedia #JournalistsRights #DigitalAdvertisingRevenue #LicensingAgreements

More Info — Click Here

Featured Image courtesy of Unsplash and Photos by Lanty (0qIpB_cIsXE)

Joe Habscheid


Joe Habscheid is the founder of midmichiganai.com. A trilingual speaker fluent in Luxemburgese, German, and English, he grew up in Germany near Luxembourg. After obtaining a Master's in Physics in Germany, he moved to the U.S. and built a successful electronics manufacturing office. With an MBA and over 20 years of expertise transforming several small businesses into multi-seven-figure successes, Joe believes in using time wisely. His approach to consulting helps clients increase revenue and execute growth strategies. Joe's writings offer valuable insights into AI, marketing, politics, and general interests.

Interested in the Power of AI ?

Join The Online Community Of Mid-Michigan Business Owners Embracing Artificial Intelligence. In The Future, AI Won't Replace Humans, But Those Who Know How To Leverage AI Will Undoubtedly Surpass Those Who Don't.

>