The $16 million is paid out in quarterly installments of around $4 million, which Dotdash Meredith includes in its licensing revenue. Most of OpenAI's deals with publishers are structured around a fixed payment for archival content and a variable payment based on the frequency of content appearance in OpenAI products. The total annual payment will likely be higher as Dotdash Meredith has not yet received or reported its variable payment. The partnership also includes collaboration to enhance D/Cipher, Dotdash Meredith's contextual ad-targeting tool.
Key takeaways:
- OpenAI is paying Dotdash Meredith around $16 million per year to license its content, according to financial documents from IAC, Dotdash Meredith's parent company.
- The $16 million is a minimum figure, reflecting only the fixed component of the payment, not the variable component which will be calculated in the future.
- OpenAI has also signed agreements with other publishers including Axel Springer, Vox Media, Condé Nast, The Atlantic, and The Financial Times to train its large-language models on their content.
- The partnership between OpenAI and Dotdash Meredith also includes enhancing D/Cipher, Dotdash Meredith's contextual ad-targeting tool launched in May 2023.