The New York Times and Amazon's AI licensing deal is reportedly worth up to $25 million per year
Amazon's AI licensing deal with The New York Times is worth $20 million to $25 million per year, according to The Wall Street Journal. The two companies did not disclose the fiscal terms of the agreement back when it was announced in May. The Journal's reporting provides a rare insight into the value of a media company licensing its content for AI training.
In the case of The Times, Amazon's annual payments to the publisher would amount to nearly one percent of its total revenue in 2024. In return, the agreement allows Amazon to train its AI models on content from The Times, including content from auxiliary arms of the company like The Athletic and NYT Cooking. It also allows Amazon to offer summaries and excerpts from the paper through Alexa.
In light of that, $20 million to $25 million per year seems a small payout when the threat AI poses to publishers is so great, and other media companies have been able to negotiate bigger payouts. For instance, OpenAI's five-year licensing deal with News Corp, the owner of The Wall Street Journal, is reportedly worth more than $250 million.
The New York Times sued OpenAI and Microsoft for training their models on the company’s content without permission back in 2023. That case is still ongoing.This article originally appeared on Engadget at https://www.engadget.com/ai/the-new-york-times-and-amazons-ai-licensing-deal-is-reportedly-worth-up-to-25-million-per-year-135523853.html?src=rss