Germany’s Biggest News Publisher, Axel Springer, Strikes Landmark AI Licensing Deal with OpenAI

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Germany’s biggest news publisher, Axel Springer, has reached a groundbreaking deal with OpenAI that allows the AI company to use its articles to train ChatGPT. The agreement allows OpenAI to utilize content from Axel Springer-owned titles like Politico and Business Insider to develop its AI chatbot. In addition, selected news stories will be used by ChatGPT to provide users with answers to their questions in the form of short summaries with links to the full articles, including paywalled content. While the terms of the deal were not disclosed, a source close to the matter revealed that it includes a one-time payment for past content and a licensing fee worth tens of millions of euros per year.

The significance of this collaboration lies in its role as a major licensing agreement amid publishers’ efforts to safeguard their intellectual property from the expanding influence of AI. Publishers have expressed concerns about tech giants utilizing their content without permission or compensation to train AI systems. OpenAI’s deal with Axel Springer follows a similar agreement with The Associated Press and ongoing negotiations with other publishers, including Rupert Murdoch’s News Corp.

Although hailed as a major step forward, the deal has faced some criticism from journalists who claim they were not informed beforehand. Joe Bambridge, an assistant editor at Politico Europe, voiced disappointment about the lack of communication regarding how their work would be used and whether they would benefit from the revenue generated.

Despite such concerns, licensing agreements are generally viewed by news outlets as a sustainable solution. Owen Meredith, chief executive of the News Media Association, emphasized the importance of rights holders consenting to the use of their content and stressed that publishers’ ability to protect their intellectual property relies on a robust and enforceable copyright framework.

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This landmark deal comes shortly after Axel Springer’s announcement that it will transform its Upday news service into a trend news generator driven by AI. The company’s CEO, Mathias Döpfner, expressed enthusiasm about the partnership between Axel Springer and OpenAI, heralding it as the first of its kind and emphasizing the potential of AI-empowered journalism to elevate the quality, relevance, and business model of journalism.

The integration of AI into the realm of news publishing continues to evolve, challenging both publishers and regulators to find a balance that protects intellectual property while fostering technological advancement. While obstacles remain, agreements like the one between Axel Springer and OpenAI represent a step forward in navigating these complexities and ensuring that publishers and creators worldwide benefit from AI technology and new revenue models.

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