News Corp CEO Critiques AI Companies’ Investment Strategy

Robert Thomson, chief executive of News Corp, described the current trend of AI companies pouring billions into superchips and data centers while neglecting newsroom staffing as a “fundamental miscalculation.”

Speaking at the Times Tech Summit in London on Tuesday, Thomson emphasized the necessity for AI firms to prioritize investment in “editorial content,” which he considers crucial for the effectiveness of AI.

“If you’re spending billions on infrastructure rather than content, you’re fundamentally misjudging your own value,” Thomson asserted.

News Corp oversees notable publications such as The Post, The Wall Street Journal, The Times of London, and HarperCollins.

Thomson went on to explain that AI companies must maintain up-to-date AI engines and keep pace with news to benefit from the immediacy that news outlets deliver.

Under Thomson’s guidance, News Corp plans to adopt a “persuade or sue” stance towards the AI sector, terminating licensing agreements with firms that honor copyright protection and pursuing legal action against those that do not.

Recently, News Corp struck a licensing deal with OpenAI, the developer of ChatGPT, valued at over $250 million across five years.

Thomson believes such agreements establish standards for future interactions between media organizations and AI companies.

“We’re responsible not only to our shareholders but to society, too,” he mentioned. “Setting a precedent facilitates easier negotiations for us and other companies.”

He noted that litigation can foster accountability in cases where agreements fall through.

“Winning is, of course, ideal, but the disclosure process holds significant value,” he remarked. “More transparency leads to greater accountability.”

Thomson also urged news organizations to be proactive in asserting their rights.

“In the end, it’s about whether news outlets safeguard their rights, stay alert to developments, and engage in informed discussions with these tech firms,” he said, acknowledging the sophistication of these companies.

He added that media must continuously innovate, as “being defensive is not a winning strategy.”

Moreover, Thomson called on the United States to uphold its strong creative and intellectual property rights, which provide an edge over tech competitors like China.

Given that AI systems are crafted by humans, Thomson argued that creators should be held accountable for the results, intentional or otherwise.

His remarks arrive amidst a wave of copyright lawsuits against AI firms accused of using content to train models without permission.

For example, the New York Times has taken legal action against OpenAI and Microsoft. Likewise, several newspapers owned by Alden Global Capital have filed similar lawsuits.

Other publishers like Condé Nast and The Atlantic are also pursuing legal action against AI firm Kohia for widespread copyright violations.

Dow Jones, part of News Corp, has its own ongoing lawsuit against Perplexity AI over the unauthorized use of news articles.

Earlier in the year, the News/Media Alliance was established to represent numerous news organizations in their legal battles.

Disney and Universal have even joined forces to file a lawsuit against the AI company Midjourney, following allegations of movie copyright infringement.