Google and California Strike Historic Deal to Fund Newsrooms Amid Controversy

In a groundbreaking move, Google has inked a first-of-its-kind agreement with California officials to provide significant funding for local newsrooms and put an end to proposed legislation that would have required tech giants to compensate news organizations for distributing their content. According to CNN, the deal, announced on Wednesday, marks a major shift in how news funding is approached but has sparked strong criticism from journalist unions.

The agreement entails a joint investment of $250 million over the next five years. Google will contribute up to $15 million in the initial year, with California matching that amount with a $30 million investment. In subsequent years, the state’s annual contribution will decrease to $10 million, while Google will continue to invest a minimum of $20 million annually into the journalism fund and related programs. This financial commitment is set to support newsrooms across the state and includes the launch of an artificial intelligence “accelerator” aimed at enhancing journalistic work.

This deal effectively shelves the California Journalism Preservation Act, a high-profile bill introduced by state assemblymember Buffy Wicks. The legislation sought to compel tech companies, including Google and Meta, to pay news organizations for the use of their content online. Modeled after similar measures in Australia and Canada, the bill aimed to bolster funding for local news outlets struggling in the face of declining revenues and shifting advertising dollars.

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Buffy Wicks praised the agreement in a statement, highlighting its potential to reinforce journalism’s role in democracy. “This partnership represents a cross-sector commitment to supporting a free and vibrant press,” Wicks said. California Governor Gavin Newsom also endorsed the deal, describing it as a “major breakthrough” that leverages tech industry resources without imposing new taxes on Californians.

Despite the official support, the deal has been met with sharp criticism from journalist unions. The unions, which had supported the now-shelved bill, argue that the agreement is detrimental to the future of journalism and express concerns over the introduction of the National AI Innovation Accelerator. Critics argue that the involvement of AI in journalism could further undermine trust in news reporting and threaten the industry’s stability.

Source: CNN