Google Strikes Deal with California Lawmakers: $250 Million for Newsrooms, But Critics See it as a “Secret Deal”

• Google has reached an agreement with California lawmakers to pay newsrooms in the state $250 million over five years, avoiding a proposed state bill that would have forced it to pay for linking Californians to news articles.
• The money will be split between funding for news outlets and an AI program to “strengthen the workforce,” with initiatives set to launch in 2025.
• The agreement has been met with mixed reactions, with some praising it as a step towards supporting local journalism, while others criticize it as a “secret deal” that fails to adequately address the challenges facing the news industry.

Google has reached a landmark agreement with California lawmakers, committing $250 million over the next five years to support newsrooms across the state. The deal, a first-of-its-kind arrangement, comes amid ongoing tension between tech giants and the news industry regarding the future of local journalism.

The agreement, funded by a combination of taxpayer dollars, Google, and potentially other private sources, aims to circumvent a proposed state bill that would have forced Google to pay for linking Californians to news articles. The funding will be divided between two initiatives: $180 million for Californian news outlets and $70 million for AI resources to “strengthen the workforce”.

While the deal has been lauded by Governor Gavin Newsom and the California News Publishers Association, it has also drawn criticism from lawmakers and journalists who argue it doesn’t go far enough to address the challenges facing the news industry. Concerns have been raised about the use of taxpayer funds, the potential for AI to displace journalism jobs, and the limited financial commitment from Google.

This agreement highlights the complex and evolving relationship between technology giants and the news media. While Google’s contribution is a significant step towards supporting local journalism, critics argue that it’s a “secret deal” that doesn’t fully address the underlying issues plaguing the industry. The long-term impact of this agreement on the future of journalism in California remains to be seen.