Meta Inks $50M/Year AI Deal with NewsCorp
Meta and NewsCorp have signed a landmark AI content licensing deal valued at up to $50 million annually for text and video. The move signals a major shift in newsroom strategy, treating AI not as a threat but as a direct revenue stream. This puts pressure on tech platforms to offer IP protection and monetization tools, not just workflow features.
This deal is part of a larger, multi-pronged AI strategy for News Corp, which also secured a five-year, $250 million deal with OpenAI in 2024. The company also has a smaller $6 million annual deal with Google to develop AI content. News Corp CEO Robert Thomson has adopted a "woo or sue" approach to AI, indicating a willingness to partner with tech companies while also pursuing legal action against those who use their content without permission. Following this strategy, two News Corp subsidiaries are currently suing AI search company Perplexity for copyright infringement. The agreement grants Meta access to current and archived text and video content from News Corp's U.S. and U.K. properties for at least three years. This includes major publications like The Wall Street Journal, New York Post, The Times, and MarketWatch. Australian outlets are not part of the deal. This licensing model is becoming a clear trend for Meta, which has also struck deals with Reuters, CNN, Fox News, People Inc., and USA Today to train its AI models. However, the financial terms of those other agreements have not been publicly disclosed. The industry remains divided on how to engage with AI developers. While some, like News Corp, are striking lucrative licensing deals, others are heading to court. Notably, The New York Times is actively suing both Microsoft and OpenAI for copyright infringement while simultaneously having a licensing agreement with Amazon reportedly worth $20-$25 million annually. News Corp's leadership views its extensive and reliable news archives as a crucial "input" for training large language models, similar to semiconductors or data centers. CEO Robert Thomson argues that the immediacy of fresh news is something AI models "not only want, but need," giving publishers significant leverage.
