- Google and California have agreed on a $172.5 million deal to support local journalism over five years.
- A portion of the funds will be allocated to AI development within the state.
- The deal follows California’s proposal to make tech companies pay for news content, inspired by similar legislation in Australia.
- California will contribute an additional $70 million, focused solely on an AI-centered nonprofit.
- $55 million will go to a nonprofit charity at UC Berkeley’s journalism school and $50 million to existing journalism programs.
- The journalism community criticizes the deal as insufficient and overly focused on AI rather than directly supporting local news.
Main AI News:
Google LLC and the state of California have finalized a $172.5 million agreement to support local journalism over the next five years. A portion of the funds will be allocated for the development of artificial intelligence within the state.
The deal comes after prolonged discussions between California lawmakers and the tech giant. These discussions were initially sparked by the state’s proposal to require major technology companies, including Meta Platforms Inc., to compensate news publishers for linked content. This proposal, known as the “California Journalism Preservation Act,” was inspired by similar legislation in Australia that required Meta to pay for Australian news content.
In addition to Google’s financial commitment, California will contribute $70 million from state taxes to the initiative, though these funds will be exclusively directed toward a new AI-centered nonprofit. Of the total funding, $55 million will be directed to a nonprofit public charity associated with UC Berkeley’s journalism school, while existing journalism programs throughout the state will receive $50 million.
The partnership is framed as a public-private collaboration to accelerate AI innovation and support local and national businesses alongside nonprofit organizations. This initiative is intended to build on Google’s history of working with journalism and the local news ecosystem in California while fostering a national center for AI policy development.
However, the response from the journalism community has been critical. The Media Guild of the West, representing journalists in California, Arizona, and Texas, has described Google’s contribution as an acknowledgment of its dominant influence over newsrooms. The guild views the funding as a minimal gesture intended to avoid state legislation, with much of the money directed toward what it sees as a vague AI accelerator project.
Similarly, the advocacy group Free Press Action has expressed disappointment, calling the funding insufficient and criticizing the lack of a strong commitment to localism and diversity. State Senator Steve Glazer, who authored a bill focused on revitalizing local journalism, believes that the agreement needs to be revised to establish a sustainable solution for independent journalism and will have little impact on reversing the decline of local news in California.
Conclusion:
The agreement between Google and California represents a complex dynamic between Big Tech and the local journalism sector. While the investment is significant, the allocation of funds, particularly toward AI development, highlights a strategic focus on innovation rather than direct support for struggling newsrooms. This approach may reinforce Google’s influence in the market while doing little to address the underlying challenges facing local journalism. The deal reflects a broader trend where tech companies play a dual role as both disruptors and potential saviors of traditional industries, raising questions about the future balance of power and the sustainability of independent journalism. For the market, this suggests continued consolidation of influence by major tech players, with local journalism possibly becoming more dependent on their support, further complicating the media landscape.
