OpenAI has reportedly offered some media firms minimal compensation ranging between $1 million and $5 million annually to license their news articles for training its extensive language models, presenting a potential challenge in striking deals, according to sources involved in negotiations with the company.
Simultaneously, Apple, vying to compete with OpenAI and Google in the generative artificial intelligence sector, is also engaging in negotiations with publishers. Apple is offering more substantial remuneration but seeks broader rights to use the content than what OpenAI is proposing.
In a reminiscent turn of events from past decades, tech giants like Facebook (now Meta Platforms) and Google previously acquired licenses to utilise news content for social media and search. Such deals have left publishers apprehensive due to the reduced importance placed on news by platforms like Facebook, diminishing payments that once significantly aided media businesses.
Recently, The New York Times Co. filed a lawsuit against OpenAI and its partner, Microsoft, for copyright infringement. The lawsuit comes after unsuccessful negotiations to ensure fair compensation for content usage, signalling a potential trend of legal action by publishers against AI developers.
OpenAI, however, expressed disappointment at the lawsuit, affirming its commitment to collaborating with content creators and owners for mutual benefit. The company remains hopeful for an amicable resolution, highlighting ongoing collaborations with various publishers.
Engaging with nearly a dozen publishers, OpenAI aims to strike deals akin to those with Axel Springer and the Associated Press. The terms of these deals, including Axel Springer’s agreement worth tens of millions over multiple years, remain undisclosed. Apple, on the other hand, is purportedly nearing multiyear deals worth at least $50 million with several news organisations.
While Google is developing its LLMs for consumers and enterprises, it lags behind OpenAI and Apple in negotiating licensing agreements with publishers. However, Google’s strong relationships with publishers, particularly through products like Google News, and bespoke agreements with entities like The New York Times, position it uniquely in this landscape.
The issue of copyright infringement in AI development isn’t exclusive to OpenAI; other LLM developers face similar challenges. The Times’ lawsuit against OpenAI is considered potentially more compelling due to verbatim examples filed as evidence.
As The New York Times has registered a vast number of articles with the U.S. Copyright Office, it could seek substantial damages exceeding $750 million in the event of a favourable ruling, given the extensive corpus of registered content.
