Apple in Talks for $50 Million Deals with News Giants to Boost AI Capabilities: NYT Report

By James Pebenito • December 24, 2023

Apple in Talks for $50 Million Deals with News Giants to Boost AI Capabilities: NYT Report

According to reports, tech giant Apple is negotiating multi-year contracts for at least $50 million with several news and publishing companies. According to sources quoted by The New York Times, the objective is to license news content from publishers to improve Apple’s generative artificial intelligence (AI) systems.

Neural network-driven generative AI allows computers to produce text and images that resemble those of humans by identifying patterns in large photo or digital text collections. Rivals with generative AI technology already include Microsoft, OpenAI (the parent firm of ChatGPT), Google, and Meta Platforms.

Reportedly, Condé Nast, NBC News, and IAC are among the major publishers involved in the negotiations. These conversations represent Apple’s first steps toward competing with other companies in the generative AI space. The proposed agreements are intended to be used to train Apple’s generative AI systems using news articles from publishers.

Publisher Reactions Were Mixed

Publishers’ reactions have been mixed, with some voicing worries about long licensing agreements and possible legal ramifications. On the other hand, some see the cooperation as a chance to form significant alliances that might be advantageous to both sides. In the sector, the relationship between tech companies and news publishers to promote AI is becoming more and more common.

This evolution reflects a larger trend in the tech sector, where businesses are actively working with news publishers to enhance their artificial intelligence capabilities. Notably, OpenAI and German publisher Axel Springer recently reached an agreement whereby OpenAI would pay Axel Springer millions of euros in exchange for the usage of news material in AI model training.

Resolving Issues

Although these collaborations demonstrate the synergy between the digital and journalistic industries, the Journalistic Media Alliance has expressed concerns over generative AI systems’ overuse of protected content. These concerns might be addressed by licensing agreements such as the ones put up by Apple, which could create a legal framework for the use of news information in AI training.

Apple’s efforts to secure licensing agreements highlight how strategically significant it is to include top-notch news material in AI training datasets. These partnerships are anticipated to influence the direction of information processing and content creation in the future, as AI plays an increasingly important role in technology.

Within the dynamic field of AI integration, Apple’s endeavors underscore the convergence of media and technology, opening the door for inventive breakthroughs and prospective industry norms in AI training partnerships.

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