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OpenAI will pay DotDash Meredith at least $16 million per year to license its content

Nov 19, 2024 - engadget.com
OpenAI is reportedly paying digital media company Dotdash Meredith at least $16 million annually to license its content, as per public financial documents. The actual payout could exceed this figure as it only represents the "fixed" component, with a "variable" component to be calculated in the future. The licensing agreement allows OpenAI to train its ChatGPT using Dotdash Meredith's content, while the publisher will use OpenAI's models to enhance its in-house ad-targeting tool.

The agreement also stipulates that ChatGPT will display content and links from Dotdash Meredith's various publications, including Food & Wine, InStyle, Better Homes & Gardens, Lifewire, and Investopedia, among others. This move follows lawsuits against OpenAI from entities like The New York Times and comedian Sarah Silverman, accusing it of using content without permission or compensation. Other publishers, like the Financial Times and HarperCollins, have also entered similar arrangements with OpenAI.

Key takeaways:

  • OpenAI is paying Dotdash Meredith at least $16 million per year to license its content, with the potential for the payout to increase due to a variable component that will be calculated in the future.
  • The licensing agreement allows OpenAI to train ChatGPT with Dotdash Meredith's content, and in return, Dotdash Meredith will use OpenAI's models to enhance its in-house ad-targeting tool.
  • ChatGPT will display content and links from various publications under the Dotdash Meredith umbrella, including Food & Wine, InStyle, Better Homes & Gardens, Lifewire, Investopedia, and others.
  • Other publishers like the Financial Times and HarperCollins have entered into similar arrangements with OpenAI, which has previously been sued by various entities for using content without permission or payment.
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