OpenAI’s significant advancements in its GPT model likely stem from extensive web scraping, including archives from major publishers like Axel Springer, Condé Nast, and The Associated Press, without permission.
Despite this, OpenAI has struck deals with these conglomerates.
Why OpenAI is making these Deals?
At first glance, these deals seem puzzling. Why would OpenAI pay for content it already accessed? And why would publishers, some of whom are considering lawsuits, agree to these deals?
The Future of Web Search
Google’s decreasing referral traffic to external sites creates a power vacuum in search, which OpenAI might be aiming to fill.
The deals allow OpenAI to access recent and authoritative content, enhancing ChatGPT’s user experience with up-to-date information.
Financial Details
OpenAI offers publishers between $1 million and $5 million annually, with some deals reaching up to $10 million per year. While these amounts seem small compared to the company’s revenue, they serve to prevent lawsuits and ensure continued access to valuable data.
Legal Battles
The New York Times has filed a lawsuit against OpenAI, alleging copyright infringement. If the Times wins, OpenAI could face at least $7.5 billion in statutory damages. These deals with publishers can be seen as settlements to avoid similar lawsuits.
Reputation and Accuracy
OpenAI aims to improve its reputation and accuracy. By partnering with publishers, it gains access to reliable information, reducing the risk of errors in its AI-generated content.
Competition with Google
OpenAI’s deals give publishers leverage, potentially forcing Google to negotiate. Google’s AI chatbot has further sidelined publishers, but OpenAI’s partnerships might change the dynamics.
Search Market Takeover
OpenAI’s SearchGPT, still in its prototype phase, aims to challenge Google’s dominance in web search. The deals with publishers provide a reputational cushion and access to high-quality information.
Court Rulings and Future Implications
The outcome of the Times lawsuit could impact the entire AI ecosystem. If OpenAI loses, it could lead to significant payouts and potentially an acquisition by Microsoft. The legal battles will shape the future of AI and copyright law.
Conclusion
OpenAI’s deals with publishers are strategic moves to secure data access, avoid lawsuits, and position itself as a major player in the search market.
The upcoming legal rulings will determine the long-term impact on the AI industry.
