Proactive Investors - News Corp (NASDAQ:NWSA), the owner of The Times, The Sun and other newspapers, is set to open 6% higher after it signed a deal with OpenAI to provide it with content from its publications.
OpenAI, the ChatGPT maker, will now have permission to use content from all of the multimedia group’s titles when answering a user’s question and to enhance its products.
Thursday’s deal is believed to be worth US$250 million over five years and will be paid to News Corp (NASDAQ:NWSA) through cash and credits for OpenAI technology.
Rupert Murdoch’s conglomerate also owns newspapers across the globe such as The Wall Street Journal, The New York Post (NYSE:POST) and The Australian.
News Corp defended the multi-year partnership by claiming it would provide users with answers that are supported by reliable information and news sources.
OpenAI will not receive any additional data or content from any of News Corp’s other businesses which include the Dow Jones, Harper Collins Publishers and Realtor.com.
News Corp boss Robert Thomson told employees: “The pact acknowledges that there is a premium for premium journalism.
“The digital age has been characterised by the dominance of distributors, often at the expense of creators, and many media companies have been swept away by a remorseless technological tide.”
Last week, Reddit (NYSE:RDDT) shares jumped as much as 14% after it announced a new partnership with ChatGPT creator OpenAI.
Content from the Reddit platform is expected to be taken in by ChatGPT’s system and other products, meanwhile, OpenAI will also become an advertising partner.