Google has struck an agreement to fund local journalism and a new artificial intelligence initiative in California, effectively circumventing a legislative proposal known as the California Journalism Preservation Act. The proposed act aimed to require tech platforms to compensate news outlets for disseminating their content, a move Google opposed, terming it a “link tax”.
California Governor Gavin Newsom hailed this agreement as a significant step for sustaining local newsrooms. The initiative, announced by Assemblymember Buffy Wicks, includes nearly $250 million in public and private funding over five years, with Google contributing $55 million. The deal will establish a “News Transformation Fund” managed by UC Berkeley’s School of Journalism.
Google will also allocate $62.5 million over five years to a “National AI Innovation Accelerator” aimed to assist various industries, including journalism, in experimenting with AI. However, some lawmakers and unions have criticized the deal, labeling it a “shakedown” for its perceived inadequacy and lack of transparency.
The Media Guild of the West sharply criticized the arrangement, arguing that it contains minimal commitments from Google and might jeopardize journalism jobs. Democratic State Senator Steve Glazer also criticized the agreement for its inadequacy compared to similar settlements in Canada and questioned the exclusion of companies like Meta and Amazon from the deal.
Newsom’s office cited Google’s recent testimony opposing the bill, asserting that it breaks principles of an open internet. Despite legislative hurdles, Google appears optimistic about the collaborative framework to bolster AI and journalism.
For more details, you can read the full article on Ars Technica.