Amazon allocates up to USD25mn annually to NYT in AI agreement
(MENAFN) Amazon has agreed to pay the New York Times between $20 million and $25 million per year under a new licensing deal that allows the tech giant to use the newspaper’s content to train its artificial intelligence models, according to a report by the Wall Street Journal, citing sources familiar with the agreement.
Signed in May, the multi-year deal grants Amazon access not only to the Times’ main news coverage but also to its sports and cooking content. Although the partnership was publicly announced earlier, the financial terms were not revealed until now.
The agreement permits Amazon to use the licensed material to enhance its AI systems and to feature summaries or excerpts from the New York Times in its services, including the Alexa voice assistant. This marks the first AI-focused content licensing deal for the Times, and Amazon’s first such collaboration with a news organization.
As traditional web sources become insufficient for training advanced AI models, tech firms are increasingly turning to licensed content. According to Reuters, this move reflects the growing challenge of acquiring high-quality data to refine large-language models.
Although the annual payment represents a small fraction—around 1%—of the New York Times’ revenue, the deal introduces a new revenue stream for publishers looking to monetize their journalism beyond advertising and subscriptions.
This partnership comes amid ongoing legal disputes between media companies and AI developers. In December 2023, the New York Times sued OpenAI and its key investor Microsoft for allegedly using the newspaper’s content without permission to train models like ChatGPT. The lawsuit argues that AI-generated outputs could replicate Times content, bypassing paywalls and diverting reader traffic.
OpenAI and Microsoft have rejected the allegations, asserting their use of public content falls under fair use and that their models do not directly reproduce articles.
Other media groups are also entering licensing arrangements. In 2024, Reuters licensed content to Meta Platforms, though the terms of that deal have not been disclosed.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
