Lawsuit Exposes OpenAI’s Licensing Talks with Major Publishers

According to a new report by The New York Times, major U.S. media publishers have been in confidential talks with OpenAI over content licensing terms for the past few months.

New York Times

While NYT has now filed a lawsuit against OpenAI and Microsoft, accusing them of using its content without permission for AI products, discussions for a deal were previously ongoing.

IAC, News Corp, Gannett, and Microsoft are also said to be among the U.S. media giants in talks with the ChatGPT maker.

Microsoft, being OpenAI’s major investor, has engaged in thoughtful discussions with several publishers. They aim to incorporate AI technology into products, like chatbots, for revenue generation.

News publishers, however, remain cautious about striking deals due to past revenue losses to tech giants like Google and Facebook, as well as over concerns about AI potentially spreading misinformation.

OpenAI and Microsoft

Some publishers, like The Associated Press and Axel Springer, did strike lucrative deals with OpenAI, accessing news archives. Axel Springer’s deal, worth over $10 million annually, includes a performance fee.

However, not all media companies prioritize deals with OpenAI. Bloomberg focuses on its AI efforts, while The Washington Post has not engaged in recent negotiations.

Despite tensions, some industry executives see potential benefits in AI collaborations, highlighting the importance of settling disputes quickly to meet growing user demands.

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