Google has brokered a deal with the state of California to provide $125 million over 5 years to support local newsrooms through a nonprofit public charity.
The deal includes $70 million in funding for the development of artificial intelligence tools, which has drawn criticism from journalists who fear AI could replace their jobs.
The deal was negotiated by California Assemblymember Buffy Wicks and does not require legislation to implement, though it was used as leverage in earlier legislative efforts.
The deal has faced criticism from some Democratic lawmakers and journalist unions who view it as a "giveaway" to Google and insufficient to address the broader challenges facing the news industry.
Google previously fought against Wicks' legislative efforts, spending over $1 million on ad campaigns and temporarily blocking news access for some California consumers.
The deal aims to reverse the decline of the journalism industry as readership migrated online and advertising dollars evaporated.
The debate centered around the best way to resuscitate the news industry, with Wicks arguing online platforms have decimated newsrooms, while Google contended it has provided substantial financial assistance already.
The deal represents a novel and controversial approach, as it is the first of its kind in the U.S.
to direct funding from a tech company to local newsrooms.
The deal has divided the journalism sector, with some offering tepid support as a "first step" and others blasting it as a "total rout" for Google.
The complex negotiations involved various industry and business lobbying groups, reflecting the broader challenges and competing interests in addressing the news industry's decline.