Google avoids "link tax" bill with deal to fund California journalism and AI

Google has reached an agreement to fund local journalism and an artificial intelligence initiative in California, which is expected to lead to the shelving of a proposed "link tax" bill that would require the company to pay news outlets for content distribution. The deal, supported by Governor Gavin Newsom, involves nearly $250 million in public and private funding over five years, with Google contributing $55 million and the state providing $30 million in the first year and $10 million annually thereafter. A "News Transformation Fund" will be established, administered by the UC Berkeley School of Journalism, to distribute funds based on the number of journalists employed by news organizations. Additionally, Google will invest $62.5 million in a "National AI Innovation Accelerator" to support various sectors, including journalism. However, the agreement has faced criticism from some lawmakers and the Media Guild of the West union, which labeled it a "shakedown" and expressed concerns over insufficient funding and the lack of involvement from other tech companies like Meta and Amazon. Critics argue that the deal does not adequately address the challenges facing local newsrooms and may not provide a sustainable solution for the industry.

- Google will contribute $55 million to a new journalism fund over five years.

- The deal aims to support local journalism and AI initiatives in California.

- Critics argue the agreement is inadequate and lacks transparency.

- The funding will be distributed based on the number of journalists employed by news organizations.

- Concerns have been raised about the absence of contributions from other major tech companies.