Google strikes a deal with California lawmakers to fund local news

Google has reached a deal with California lawmakers to fund local news in the state after previously protesting a proposed law that would have required it to pay media outlets. Under the terms of the deal, Google will commit tens of millions of dollars to a fund supporting local news as well as an AI “accelerator program” in the state.

The agreement ends a months-long dispute between lawmakers and Google over the California Journalism Preservation Act, a bill that would have required Google, Meta and other large platforms to pay California publishers in exchange for linking to their websites. Google strongly opposed the measure, which was similar to laws passed in Canada and Australia.

Earlier this year, Google began a “short-term test” in the state that removed links to local news for some users in California. The company also halted some of its own spending on local news in the state.

Now, under the new agreement, Google will direct “at least $55 million” to “a nonprofit public charity housed at UC Berkeley’s journalism school,” Politico reports. The university will distribute the fund, which also includes “at least $70 million” from the state of California. Google will also “commit $50 million over five years to unspecified ‘existing journalism programs.’”

The agreement also includes funding for a “National AI Innovation Accelerator.” Details of that program are unclear, but Cal Matters reports that Google will dedicate “at least $17.5 million” to the effort, which will fund AI experiments for local businesses and other organizations, including newsrooms. That aspect of the deal, which is so far unique to Google's agreement in California, could end up being more controversial as it could exacerbate existing tensions between publishers and AI companies.

In a statement, Alphabet’s President of Global Affairs, Kent Walker, credited the “thoughtful leadership” of California Governor Gavin Newsom and other state officials in reaching the agreement. “California lawmakers have worked with the tech and news sectors to develop a collaborative framework to accelerate AI innovation and support local and national businesses and nonprofit organizations,” he said. “This public-private partnership builds on our long history of working with journalism and the local news ecosystem in our home state, while developing a national center of excellence on AI policy.”