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

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

A new crop of early-stage startups — along with some recent VC investments — illustrates a niche emerging in the autonomous vehicle technology sector. Unlike the companies bringing robotaxis to…

VCs and the military are fueling self-driving startups that don’t need roads

When the founders of Sagetap, Sahil Khanna and Kevin Hughes, started working at early-stage enterprise software startups, they were surprised to find that the companies they worked at were trying…

Deal Dive: Sagetap looks to bring enterprise software sales into the 21st century

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI moves away from safety

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine

IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets

Featured Article

Two Santa Cruz students uncover security bug that could let millions do their laundry for free

CSC ServiceWorks provides laundry machines to thousands of residential homes and universities, but the company ignored requests to fix a security bug.

2 days ago
Two Santa Cruz students uncover security bug that could let millions do their laundry for free

TechCrunch Disrupt 2024 is just around the corner, and the buzz is palpable. But what if we told you there’s a chance for you to not just attend, but also…

Harness the TechCrunch Effect: Host a Side Event at Disrupt 2024

Decks are all about telling a compelling story and Goodcarbon does a good job on that front. But there’s important information missing too.

Pitch Deck Teardown: Goodcarbon’s $5.5M seed deck

Slack is making it difficult for its customers if they want the company to stop using its data for model training.

Slack under attack over sneaky AI training policy

A Texas-based company that provides health insurance and benefit plans disclosed a data breach affecting almost 2.5 million people, some of whom had their Social Security number stolen. WebTPA said…

Healthcare company WebTPA discloses breach affecting 2.5 million people

Featured Article

Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Microsoft won’t be facing antitrust scrutiny in the U.K. over its recent investment into French AI startup Mistral AI.

2 days ago
Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Ember has partnered with HSBC in the U.K. so that the bank’s business customers can access Ember’s services from their online accounts.

Embedded finance is still trendy as accounting automation startup Ember partners with HSBC UK

Kudos uses AI to figure out consumer spending habits so it can then provide more personalized financial advice, like maximizing rewards and utilizing credit effectively.

Kudos lands $10M for an AI smart wallet that picks the best credit card for purchases

The EU’s warning comes after Microsoft failed to respond to a legally binding request for information that focused on its generative AI tools.

EU warns Microsoft it could be fined billions over missing GenAI risk info

The prospects for troubled banking-as-a-service startup Synapse have gone from bad to worse this week after a United States Trustee filed an emergency motion on Wednesday.  The trustee is asking…

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’

U.K.-based Seraphim Space is spinning up its 13th accelerator program, with nine participating companies working on a range of tech from propulsion to in-space manufacturing and space situational awareness. The…

Seraphim’s latest space accelerator welcomes nine companies

OpenAI has reached a deal with Reddit to use the social news site’s data for training AI models. In a blog post on OpenAI’s press relations site, the company said…

OpenAI inks deal to train AI on Reddit data

X users will now be able to discover posts from new Communities that are trending directly from an Explore tab within the section.

X pushes more users to Communities

For Mark Zuckerberg’s 40th birthday, his wife got him a photoshoot. Zuckerberg gives the camera a sly smile as he sits amid a carefully crafted re-creation of his childhood bedroom.…

Mark Zuckerberg’s makeover: Midlife crisis or carefully crafted rebrand?

Strava announced a slew of features, including AI to weed out leaderboard cheats, a new ‘family’ subscription plan, dark mode and more.

Strava taps AI to weed out leaderboard cheats, unveils ‘family’ plan, dark mode and more

We all fall down sometimes. Astronauts are no exception. You need to be in peak physical condition for space travel, but bulky space suits and lower gravity levels can be…

Astronauts fall over. Robotic limbs can help them back up.

Microsoft will launch its custom Cobalt 100 chips to customers as a public preview at its Build conference next week, TechCrunch has learned. In an analyst briefing ahead of Build,…

Microsoft’s custom Cobalt chips will come to Azure next week

What a wild week for transportation news! It was a smorgasbord of news that seemed to touch every sector and theme in transportation.

Tesla keeps cutting jobs and the feds probe Waymo