Google Agrees To $250 Million Deal To Fund California Newsrooms, AI

Google has reached a groundbreaking deal with California lawmakers to contribute millions to local newsrooms, aiming to support journalism amid its decline as readers migrate online and advertising dollars evaporate. The agreement also includes a controversial provision for artificial intelligence funding. Politico reports: California emulated a strategy that other countries like Canada have used to try and reverse the journalism industry's decline as readership migrated online and advertising dollars evaporated. Under the deal, the details of which were first reported by POLITICO on Monday, Google and the state of California would jointly contribute a minimum of $125 million over five years to support local newsrooms through a nonprofit public charity housed at UC Berkeley's journalism school. Google would contribute at least $55 million, and state officials would kick in at least $70 million. The search giant would also commit $50 million over five years to unspecified 'existing journalism programs.'

The deal would also steer millions in tax-exempt private dollars toward an artificial intelligence initiative that people familiar with the negotiations described as an effort to cultivate tech industry buy-in. Funding for artificial intelligence was not included in the bill at the core of negotiations, authored by Assemblymember Buffy Wicks. The agreement has drawn criticism from a journalists' union that had so far championed Wicks' effort. Media Guild of the West President Matt Pearce in an email to union members Sunday evening said such a deal would entrench 'Google's monopoly power over our newsrooms.' 'This public-private partnership builds on our long history of working with journalism and the local news ecosystem in our home state, while developing a national center of excellence on AI policy,' said Kent Walker, chief legal officer for Alphabet, the parent company of Google.

Media Guild of the West President Matt Pearce wasn't so chipper. He criticized the plan in emails with union members, calling it a 'total rout of the state's attempts to check Google's stranglehold over our newsrooms.'

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