Google’s recent deal with the Associated Press (AP) and OpenAI’s funding of Axios highlight the critical challenge facing journalism in the generative era: how to remain a sustainable business while embracing disruptive technology.
Google’s partnership with AP builds on their existing collaboration and brings real-time news to its Gemini AI chatbot. AP’s VP of Global Business Development Kristin Heitmann called it “a new revenue stream for trusted journalism.” Licensing content isn't a new idea, but the trend reinforces the value of the content and moves away from the controversies of algorithmic scraping.
In an unrelated story, OpenAI announced it is backing Axios’s expansion into four new local markets (Pittsburgh, PA; Kansas City, MO; Boulder, CO; and Huntsville, AL) as part of a broader $10 million investment in local news. Axios Publisher Nick Johnston noted, “This funding allows us to explore how AI can augment local journalism, ensuring communities stay informed while reducing operational costs.”
Both efforts reflect a shared mission: finding a path forward for the coexistence of professional journalism and AI. Google is betting on content licensing as a model for sustainability, while OpenAI is exploring whether AI can make local journalism viable through a tool integration strategy.
The bigger question is whether these approaches address journalism’s existential crisis. Will licensing agreements and AI partnerships fund the robust, investigative reporting that democracy depends on, or are these just tech-driven stopgaps that fail to address the underlying economic challenges of the news business? If AI can’t make journalism profitable, who will fund the truth in a world where misinformation is free?
As always your thoughts and comments are both welcome and encouraged. Just reply to this email. -s
P.S. As I speak with friends and colleagues who have lost their homes (and in many cases, their entire communities), they literally need everything. If you can find it in your heart to help, here is a list of charities vetted by Charity Navigator as well as Charity Watch.
P.P.S. Check out the highlights from the Shelly Palmer Innovation Series Breakfast at CES 2025: Linda Yaccarino, Mark Cuban, Jeffrey Katzenberg, May Habib, Anjali Sud, Michael Kassan, and me.
About Shelly Palmer
Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, is a regular commentator on CNN and writes a popular daily business blog. He's a bestselling author, and the creator of the popular, free online course, Generative AI for Execs. Follow @shellypalmer or visit shellypalmer.com.
