In a bold move, News Corp's global CEO has positioned news organizations as an essential 'input' for artificial intelligence, signing a lucrative deal with Meta. This development raises intriguing questions about the future of media and AI.
The Age of AI: News as Input, Not Output
News Corp's CEO, Robert Thomson, sees news organizations as a valuable resource for AI, offering 'reliable' and 'hard-to-beat' breaking news and information. In a recent presentation, he likened News Corp to an 'input company,' similar to semiconductors or datacenters, essential for AI's development.
The deal with Meta, worth up to $50 million annually, allows Meta to access News Corp's US and UK content to train its AI products. This includes publications like the Wall Street Journal and the New York Post, but notably excludes Australian mastheads.
The AI-Media Nexus: Opportunities and Risks
Thomson believes the opportunities AI presents for news organizations outweigh the risks. He has a 'woo or sue' approach, welcoming deals with AI companies while also taking legal action if content is used illegally. This strategy has led to partnerships with OpenAI, with whom Thomson signed a $250 million deal in 2024.
However, News Corp's approach differs in Australia, where they have taken a more adversarial stance against social media companies, blaming them for social cohesion issues. Michael Miller, executive chair of News Corp Australia, called for media unity against platforms seeking content for free.
AI in Journalism: A Double-Edged Sword
News Corp has also embraced AI within its journalism practices, introducing an in-house tool called 'NewsGPT.' While some journalists have expressed concerns, the integration of AI into search engines has been seen as a threat to professional journalism's sustainability. The reduced click-throughs to news websites due to Google's AI-integrated search highlight this challenge.
In contrast, other publications like the New York Times have taken legal action against OpenAI and Microsoft, suing them over the use of their content to train generative AI systems.
The AI Infrastructure Race
Meta's multibillion-dollar investment in AI infrastructure last year, including a $6 billion deal with Corning for fiber optic cables, showcases the company's commitment to AI development. This move positions Meta as a key player in the AI race, with its focus on datacenters and complex materials for telecoms and electronics.
And this is the part most people miss: the potential for AI to revolutionize media is immense, but it also poses significant challenges. As we navigate this new era, the line between collaboration and conflict becomes increasingly blurred. What do you think? Should media organizations embrace AI partnerships, or is it a threat to their existence? The floor is open for discussion.
