Google Signs Deal To Serve Digital News Content, Funding California Media

Google will now pay into a California fund for publishers and journalism in exchange for serving up content in the News section of its Search platform, a controversial deal that will see funding for newsrooms and an AI initiative.

The plan is a commitment of nearly $250 million during the next five years. One-fourth of the money will come from state taxpayers and three-fourths will come from Google and possibly private donors.

The public-private partnership between Google and California is intended to fund programs to research artificial intelligence (AI) and improve local journalism.

“We appreciate the thoughtful leadership of Governor Newsom, Assemblymember Wicks, Chair Umberg, and Senator Glazer on these issues," Kent Walker, president of global affairs at Alphabet, Google's parent company told Media Daily News. "California lawmakers have worked with the tech and news sectors to develop a collaborative framework to accelerate AI innovation and support local and national businesses and non-profit organizations."

advertisement

advertisement

Google has a long-established exchange with the web ecosystem including publishers through Search. It sends billions of clicks to websites daily for free, and has no plans for that to end. The company is working to maintain, evolve and ultimately enhance this type of exchange through generative artificial intelligence (GAI).

During the past two decades, Google has seen that by improving search and serving the information needs of users, it can create new opportunities for publishers, creators and businesses. That also supports Google's vision for GAI in Search.

There are no other additional partnerships today to announce, but that doesn't mean others are not in the works.

Under the deal, California will pay $30 million during the first year and $10 million in each of the next four years. The money will go into a journalism fund to be established at UC Berkeley School for Journalism.

Google will pay $15 million into the fund and $5 million to the AI accelerator in the first year, and then add $10 million to existing journalism programs. In each of the next four years, Google would pay $10 million into the fund and $10 million into the existing programs, according to The Mercury News.

The money becomes another line item in Google's quarterly expenses to run the company. 

The majority of the funding from both will go to newsrooms. East Bay Assembly member Buffy Wicks' office announced the deal Wednesday, along with California Governor Gavin Newsom.

Next story loading loading..