News Corp, led by chief executive Robert Thomson, has recently positioned itself as a key player in the developing relationship between news organizations and artificial intelligence (AI). This stance was clearly articulated during a presentation at a Morgan Stanley tech conference in San Francisco where Thomson confirmed a notable content licensing agreement with Meta, valued at up to US$50m annually. This deal, which will span at least three years, permits Meta to use News Corp’s content from its US and UK outlets to enhance its AI products. Notable publications covered under this agreement include the Wall Street Journal and the New York Post, however, Australian entities like the Daily Telegraph and the Herald Sun are excluded.
Thomson’s representation of News Corp as an “input company” underscores the intrinsic value he believes his organization’s content provides to the AI industry, likening it to the essential roles played by semiconductors, data centers, and energy. He equated high-quality journalistic outputs such as breaking news and specialized information to these fundamental components of technology infrastructure, suggesting that in the age of AI, companies producing these inputs will hold significant leverage.
This philosophy extends to News Corp’s overall strategy toward AI technology, which has been both cooperative and defensive. Thomson described his approach as “woo or sue,” indicating a readiness to collaborate with AI companies like OpenAI and Meta through formal agreements while also standing prepared to take legal actions against any unauthorized use of News Corp’s content. This dual approach highlights the potential for beneficial partnerships in AI development while also safeguarding intellectual property rights.
The relationship News Corp holds with major AI figures appears robust, with Thomson noting regular discussions with both Sam Altman, chief executive of OpenAI, and Mark Zuckerberg of Meta. These interactions hint at ongoing dialogues and potentially more strategic alignments in the future as AI continues to interweave with various sectors, including media.
Parallel to these corporate maneuvers, News Corp Australia has voiced a more combative stance against social media platforms. Michael Miller, News Corp Australia’s executive chair, has been vocal about the challenges social media poses to social cohesion and has advocated for media unity in resistance to platforms and AI companies that demand content without compensation. This defensive posture aligns with wider industry concerns about how the integration of AI into platforms like Google Search may undermine the profitability and sustainability of traditional journalism by diminishing direct traffic to news websites.
Notwithstandig its guarded view on platform relationships, News Corp has not shied away from integrating AI into its own operations. For instance, its Australian division has developed an in-house AI tool named “NewsGPT,” though it has been met with wariness by some journalists within the organization. The hesitations stem from fears about how AI might impact the quality and structure of journalistic work.
Interestingly, while News Corp is leveraging AI in its operations and capitalizing on its content’s value to AI developers, other media organizations like The New York Times have opted for a more confrontational approach. They have pursued litigation against AI proponents like OpenAI and its supporter Microsoft, contesting the unauthorized use of their content in training AI models. This signifies a broader spectrum of strategies within the media industry concerning how best to interact with the burgeoning AI landscape.
Beyond deals with media companies, tech conglomerates like Meta are heavily investing in AI, indicated by Meta’s multi-billion-dollar arrangement with Corning for essential AI infrastructure components like fiber optic cables. This investment underscores the critical and expanding importance of AI in the operational and strategic frameworks of major tech companies.
In sum, News Corp’s newly defined role as an “input company” in the AI ecosystem reflects a strategic adaptation to the evolving technology landscape. By monetizing its content through partnerships with leading AI firms and retaining a protective stance against unauthorized use, News Corp is navigating the new challenges and opportunities presented by AI with a calculated and multi-faceted approach. This strategy not only enhances its influence in the dialogue surrounding AI’s impact on media but also sets a precedent for how news organizations might seek to harness the benefits of AI while defending the integrity and value of their journalistic work.
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