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OpenAI reaches new agreement with Microsoft to change its corporate structure - AP News

OpenAI announced Thursday that it has reached a licensing agreement with The Associated Press to access its text archive dating back to 1985.

The two organizations did not disclose specific financial terms for the deal.

OpenAI will use AP's content for training large language models, while AP will leverage OpenAI's technology and product expertise.

A joint statement emphasized that fact-based, nonpartisan news content is essential to the evolving AI technology.

AP Senior Vice President Kristin Heitmann said the arrangement respects the value of intellectual property and ensures fair compensation for creators.

The agreement comes amid a broader debate over compensation for writers whose work was used to train generative AI systems.

Over 4,000 writers, including Nora Roberts and Margaret Atwood, had signed a letter accusing major AI developers of exploitative practices.

Several novelists and comedians have already filed lawsuits against OpenAI regarding copyright infringement.

The U.S. Federal Trade Commission opened an investigation into OpenAI over concerns about data scraping and the publication of false information.

Legal expert Nick Diakopoulos noted that licensing deals may help companies guard against future court rulings on access to training material.

Associated Press is not currently using generative AI for its own news stories but has employed other AI forms for nearly a decade.

Industry analyst Ken Doctor highlighted that the AP deal could have broad effects due to the organization's size and ties to other news outlets.

The news industry is described as "far weaker today" compared to the stable position of The Associated Press in this uncertain AI-driven landscape.

AP's move follows its controversial decision in the 1990s to open up content for free on the internet, which reportedly hurt many newspaper companies.

AP plans to examine potential use cases for generative AI in its news products and services, though specifics were not released.

Both companies expressed belief in the responsible creation and use of AI systems during their joint statement.

Bullish Signals
  • OpenAI and The Associated Press announced a strategic partnership where OpenAI will license AP's text archive dating back to 1985, providing a vast dataset for training large language models.
  • This agreement serves as a hedge for OpenAI against potential legal risks, ensuring guaranteed legal access to critical news content despite ongoing lawsuits and regulatory scrutiny from the FTC.
  • The joint statement highlights that OpenAI recognizes the essential value of fact-based, nonpartisan news content, signaling respect for intellectual property which may alleviate some regulatory concerns.
  • AP senior vice president Kristin Heitmann stated the deal protects content creators and ensures fair compensation, reinforcing OpenAI's commitment to responsible AI development.
  • The partnership opens potential use cases for generative AI in news products and services, leveraging AP's existing expertise in AI automation for earnings reports and sporting events.
  • Analyst Ken Doctor notes that while the broader news industry faces challenges, AP is in stable condition with the clout to navigate the uncertain AI-driven landscape effectively.
Risk Factors
  • OpenAI faces an active Federal Trade Commission investigation into whether it engaged in unfair or deceptive privacy or data security practices regarding its data scraping and chatbot products, which could result in significant regulatory penalties or operational restrictions.
  • Over 4,000 writers and prominent authors have signed a letter accusing OpenAI of exploitative practices in building chatbots that mimic their language and style, while several novelists and comedians have already filed lawsuits for copyright infringement against the company.
  • Industry analyst Ken Doctor warns that the newspaper industry surrounding the Associated Press is 'really gasping for air' and describes navigating an AI-driven landscape as deeply uncertain, highlighting significant sector-wide weakness.
  • The deal with AP provides OpenAI a hedge against losing access to material due to lawsuits, implying that such legal threats are substantial and already threatening its operational capabilities.
  • OpenAI must ingest large troves of written works including books and news articles to improve AI systems, which increases its vulnerability to ongoing litigation from creators seeking compensation for intellectual property.
Full Analysis
OpenAI and The Associated Press (AP) have announced a new licensing agreement under which OpenAI will gain access to a substantial portion of AP's text archive, beginning in 1985, while AP intends to leverage OpenAI's technology for its own news services. Financial terms for the partnership were not disclosed by either organization. This collaboration comes amidst growing industry discussions regarding how generative AI companies train their large language models using vast datasets that often include copyrighted works without clear compensation mechanisms. The joint statement emphasized that both parties agree on the necessity of fact-based, nonpartisan news content for AI development and share a commitment to protecting intellectual property and fairly compensating creators. The partnership addresses significant legal and ethical challenges facing the artificial intelligence sector, particularly following scrutiny from regulators and content creators. Earlier this week, the U.S. Federal Trade Commission initiated an investigation into OpenAI regarding potential unfair data privacy practices and the harm caused by its chatbot products publishing false information. Additionally, over 4,000 writers have petitioned major technology firms for compensation for their works being used to train AI systems, and several high-profile authors have filed lawsuits against OpenAI for copyright infringement. By securing a direct licensing deal with AP, OpenAI is potentially hedging against legal risks associated with future court rulings that might restrict access to public data or require royalties for training materials. Industry analysts note the strategic importance of this agreement for both parties. Nick Diakopoulos, a professor at Northwestern University, suggested that signing such deals allows companies like OpenAI to guarantee legal access to critical training material in anticipation of uncertain court outcomes. AP Senior Vice President Kristin Heitmann stated the organization firmly supports frameworks that protect intellectual property and compensate content creators. Meanwhile, industry analyst Ken Doctor highlighted that while the news industry is currently struggling financially due to previous decisions made by major outlets like AP in the 1990s, the Associated Press remains stable and uniquely positioned to leverage its clout to navigate this new AI-driven landscape with local publishers. Both organizations confirmed they are exploring potential use cases for generative AI within their respective news products without providing further specifics at this time.