Google, California strike deal for funds to support newsrooms, develop AI

Aug. 22 (UPI) -- Google on Wednesday announced a deal with California legislators to provide funding to journalism initiatives to help boost local newsrooms and with funds earmarked to develop artificial intelligence through a nonprofit.

California Assemblymember Buffy Wicks, who helped secure the state deal with Google with the support of Gov. Gavin Newsom , said in a statement that nearly $250 million in public and private funding will be given to a fund for local news organizations over the next five years, front-loaded with $100 million to kickstart the program.

"As technology and innovation advance, it is critical that California continues to champion the vital role of journalism in our democracy," Wicks said. "This partnership represents across-sector commitment to support a free and vibrant press, empowering local news outlets up and down the state to continue in their essential work."

In what is being dubbed as a "first in the nation" agreement, Google will provide $110 million and the state of California will add $70 million to journalism initiatives over five years.

It further includes $70 million in private funding to develop artificial intelligence tools through a collaboration with a private non-profit that has not yet been named.

"This agreement represents a major breakthrough in ensuring the survival of newsrooms and bolstering local journalism across California -- leveraging substantial tech industry resources without imposing new taxes on Californians," Newsom said. "The deal not only provides funding to support hundreds of new journalists but helps rebuild a robust and dynamic California press corps for years to come, reinforcing the vital role of journalism in our democracy."

The agreement came after California state lawmakers attempted to pass legislation that would force tech companies Google and Meta, the parent of Facebook, to pay for the news content that appears on their websites. Some suggested that the deal lets the tech company off the hook too cheaply.

"We have concerns that this proposal lacks sufficient funding for newspapers and local media," California Senate President Pro Tem Mike McGuire said, according to Politico. "[It] doesn't fully address the inequities facing the industry."

Matt Pearce, president of the Media Guild of the West, said Google gave up a lot less than it did in negotiating with other countries over the same issue.

"Google won, a monopoly won," Pearce said in a statement. "That is dramatically worse than what Australia and Canada got. I don't know of any journalist that asked for this."