Amazon is going to pay The New York Times between $20 million to $25 million per year to use the paper’s content to train its AI models and share article summaries via Alexa.
The multiyear deal was announced in May, but the financial terms of the deal were first reported by The Wall Street Journal on Wednesday.
Beyond NYT news stories, Amazon will also be able to share content from NYT Cooking and The Athletic, its subscription sports outlet. The Amazon deal stands out, considering The Times is currently suing OpenAI, the parent company of ChatGPT; The Times claims OpenAI illegally used its content without consent.
As WSJ noted, this is the first content licensing deal The Times has signed related to AI, and similarly, this is the first content licensing deal Amazon has signed with a publisher related to its AI products.
The new pact adds to a growing list of agreements between media outlets and AI companies. News Corp., Vox Media, Business Insider and Axel Springer, among other outlets, have content-sharing deals with OpenAI, while Fortune and Time have deals with Perplexity AI.
In related Amazon-AI news, the tech giant invested in Fable Studio, the company behind the Showrunner platform that creates TV shows using AI, on Wednesday. You can read more about Showrunner by clicking here.
