California is set to make history as the first state in the US to allocate taxpayer money and tech company funds towards supporting journalism and AI research. The groundbreaking agreement, announced on Wednesday, will see a total of $250 million invested over the course of five years. This will not only provide much-needed financial aid to struggling news organizations, but also pave the way for innovative developments in the field of artificial intelligence.
Under this agreement, $100 million will be allocated in the first year alone, with the majority of the funds going towards supporting news organizations. The deal was brokered by Democratic Assemblymember Buffy Wicks, who believes it will be a major step in ensuring the survival of newsrooms and bolstering local journalism across California.
In a statement, Governor Gavin Newsom expressed his support for the deal, saying, “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. 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.”
While details on the exact breakdown of funds have not yet been released, Wicks’ office stated that the state will be contributing a significant amount, in addition to funds from tech companies. The agreement is a result of a year-long battle between tech giants and lawmakers over Wicks’ proposal to mandate a certain percentage of advertising revenue from companies like Google, Facebook, and Microsoft to be paid to media outlets for linking to their content.
This bill, inspired by a similar legislation in Canada, aimed to provide financial aid to struggling local news organizations. However, it faced intense backlash from the tech industry, which even launched ads in the summer to discredit the bill. Google even went as far as temporarily removing news websites from some search results in April to pressure lawmakers to drop the bill.
But the new agreement marks a significant shift in the relationship between tech companies and the media. Representing a cross-sector commitment to supporting a free and vibrant press, the partnership between the California government, tech companies, and news organizations will empower local news outlets to continue their essential work.
“This is just the beginning,” says Assemblymember Wicks. The hope is that this agreement will not only provide immediate support to struggling newsrooms, but also pave the way for long-term solutions and innovation in the media industry.
The decline of journalism jobs has been a pressing issue in California, with legacy media companies struggling to profit in the digital age. According to Northwestern University’s Medill School of Journalism, more than 2,500 newspapers have shut down in the US since 2005. In California alone, over 100 news organizations have closed their doors in the past decade, as reported by Wicks’ office.
The Wednesday agreement has received widespread support from various organizations, including the California News Publishers Association, which represents over 700 news outlets, and tech giant Google’s parent company, Alphabet. OpenAI has also backed the deal, showing the potential for collaboration between the tech and media industries.
However, not everyone is fully satisfied with the agreement. Some journalists, including those in the Media Guild of the West, have voiced concerns that it may have negative impacts on California news organizations. State Senator Steve Glazer, who authored a bill to provide tax credits to news organizations for hiring full-time journalists, believes that the deal “seriously undercuts” their efforts towards finding a long-term solution.
State Senate President Pro Tempore Mike McGuire also expressed his concerns, stating that the agreement does not fully address the dire situation of newsrooms in California and the disparities facing the industry. Despite these criticisms, it is evident that this agreement is a significant step towards supporting journalism and innovation in the media industry.
In a time where the decline of traditional media has been a major concern for the future of journalism, the California agreement offers a glimmer of hope. It shows that with collaboration, innovation, and a strong commitment to the freedom of the press, we can work towards a bright future for journalism in California and beyond.
