California Strikes $250M Deal with Google to Fund Newsrooms, AI Initiatives

Aug 21, 2024, 09:52 PM

California lawmakers have reached a deal with Google to fund local newsrooms and artificial intelligence initiatives, marking a significant shift from previous legislative efforts. The agreement involves a $250 million investment over five years, with Google and the state of California each contributing $125 million. This deal replaces the proposed California Journalism Preservation Act, which aimed to mandate tech companies like Google and Meta to pay news organizations for using their content. The new partnership will support journalism and AI projects, including a $40 million annual investment in AI initiatives, with a significant portion of the funding coming from taxpayers. The decision has sparked criticism from various quarters, including journalists and labor groups, who argue that it undermines efforts to create a sustainable revenue model for local journalism. The deal also includes the establishment of a Local News Fund, managed by a board at UC Berkeley, to oversee the distribution of funds.