California is making headlines by becoming the first state in the U.S. to allocate millions of dollars from taxpayer funds and tech companies to support journalism and artificial intelligence (AI) research. This groundbreaking agreement, announced on Wednesday, will see the state and tech companies contributing approximately $250 million over five years towards assisting California-based news organizations and establishing an AI research program. The funding is scheduled to commence in 2025 with an initial $100 million, with the majority of the funds designated for news organizations, as per Democratic Assemblymember Buffy Wicks who facilitated the deal.
Governor Gavin Newsom praised the agreement, emphasizing its significance in safeguarding newsrooms and strengthening local journalism across California. He highlighted the partnership with substantial tech industry resources that would not burden Californians with new taxes, aiming to support the hiring of hundreds of new journalists and fortify the state’s press corps for years to come.
Although specific details on the funding breakdown from the state, eligible news organizations, and allocation for the AI research program have not been disclosed yet, the deal signifies the resolution of a yearlong dispute between tech giants and legislators concerning Wicks’ previous proposal. The proposed bill, inspired by Canadian legislation supporting local news outlets, faced opposition from tech companies like Google, Facebook, and Microsoft, prompting a compromise that steered away from imposing mandatory revenue sharing with media firms.
California’s efforts in combating the decline of journalism jobs, influenced by the rapid changes in the digital landscape leading to closures of news outlets, have been prevalent. The state has witnessed the closure of over 100 news organizations in the last ten years, against a backdrop of more than 2,500 newspaper shutdowns nationwide since 2005. While the recent partnership has gained support from entities like the California News Publishers Association, Google’s parent company Alphabet, and OpenAI, some journalists and lawmakers have expressed concerns over its potential impact on California’s news industry.
The deal’s critics, including members of the Media Guild of the West and lawmakers like State Sen. Steve Glazer and State Senate President Pro Tempore Mike McGuire, have raised apprehensions about its effectiveness in addressing the challenges faced by local media. Glazer, who championed a bill offering tax credits to news organizations for hiring full-time journalists, suggested that the agreement falls short of providing a comprehensive, long-term solution to sustain independent journalism. McGuire echoed similar sentiments, stating that the proposal lacks sufficient funding for newspapers and fails to adequately tackle the disparities within the industry.
