Amazon Stock (AMZN) Makes Headlines on AI Training Deal With NY Times

Amazon (AMZN) stock made some headlines today when it sealed a first-ever AI training deal with the New York Times (NYT).

Recipes and Sport

Only two years after the New York Times sued OpenAI and Microsoft (MSFT) for copyright infringement, the iconic newspaper revealed that it had agreed to license its editorial content to Amazon to train the tech giant’s AI platforms. Amazon stock was up 1% in early trading as was NYT.

Besides news articles, material will also include NYT Cooking, a site dedicated to food and recipes, and The Athletic, its sports-focused site.

The company also noted that Amazon’s use of The Times’s editorial content could extend to Alexa software on its smart speakers. 

The Times said it was the first time it had agreed to a licensing agreement with a focus on generative AI. technology. “The deal is consistent with our long-held principle that high-quality journalism is worth paying for,” said The Times chief executive Meredith Kopit Levien.

GenAI Growth

The terms of the deal were not disclosed, but it’s also the first such agreement for Amazon. This contrasts with OpenAI which has signed a number of deals with publishers including The Washington Post, The Atlantic, The Guardian, NewsCorp, Axel Springer, and more. 

Back in 2023, The Times sued OpenAI and Microsoft after accusing them of using millions of articles it published to train their AI models without consent or compensation. Both OpenAI and Microsoft have rejected accusations of wrongdoing. 

This new stance shows the desire of publishers to control how their editorial content is used by tech firms, but also an understanding of the relentless rise in demand for generative AI.

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