NYT strikes landmark AI licensing deal with Amazon

The New York Times has struck a historic licensing deal with Amazon for AI-related content usage, marking the first such agreement for the legacy media company despite its ongoing lawsuits against OpenAI and Microsoft over similar issues. This precedent-setting arrangement illustrates how traditional publishers are attempting to navigate AI advancement by creating commercial frameworks for their content rather than solely relying on litigation, potentially reshaping how media companies approach AI partnerships in the future.

The big picture: The New York Times reached a multiyear agreement with Amazon to license its content for AI-related uses while maintaining active copyright infringement lawsuits against OpenAI and Microsoft.

• The deal represents the Times’ first generative AI licensing agreement, potentially signaling a shift in how publishers might approach relationships with AI companies.
• The partnership will integrate Times content across various Amazon products and services, including Alexa, while also allowing Amazon to train its proprietary foundation models.

Key details: The licensing agreement covers editorial content from The New York Times, NYT Cooking, and The Athletic sports vertical.

• The collaboration will enable real-time display of summaries and short excerpts of Times content within Amazon products and services.
• The deal includes direct links to Times products, potentially creating new pathways for subscriber acquisition.

What they’re saying: New York Times CEO Meredith Kopit Levien framed the agreement as consistent with the company’s core principles about the value of journalism.

• “It is consistent with our long-held principle that high-quality journalism is worth paying for,” Levien wrote in a memo to staff.
• She emphasized that the deal “aligns with our deliberate approach to ensuring that our work is valued appropriately, whether through commercial deals or through the enforcement of our intellectual property rights.”

Behind the numbers: The financial terms of the agreement were not disclosed, but the deal comes as the Times continues to pursue litigation against other AI companies.

• In 2023, the Times sued OpenAI and Microsoft for allegedly using millions of articles to train AI chatbots without compensation.
• OpenAI and Microsoft have denied the allegations in the ongoing lawsuits.

Why this matters: The agreement establishes a potential template for how traditional media organizations might monetize their content in the AI era while protecting their intellectual property.

• By creating a commercial framework with Amazon while simultaneously pursuing litigation against other AI companies, the Times is employing a dual strategy to address AI’s impact on journalism.
• The deal could influence how other publishers approach negotiations with AI companies seeking to use their content.