OpenAI Partners with Dotdash Meredith: $16M Annual Deal Boosts AI and Ad Targeting
November 19, 2024However, these partnerships come amid ongoing legal challenges for OpenAI, with lawsuits alleging unauthorized use of content from various entities.
Overall, OpenAI's strategy to collaborate with publishers is reshaping the media landscape, as it seeks to enhance its AI capabilities while providing financial benefits to content creators.
This licensing agreement allows OpenAI to train ChatGPT using Dotdash Meredith's content, while the publisher will leverage OpenAI's models to improve its ad-targeting capabilities.
As part of the agreement, ChatGPT will feature content and links from various Dotdash Meredith publications, enhancing the platform's offerings.
OpenAI has announced a significant partnership with Dotdash Meredith, aimed at enhancing its AI models by utilizing the publisher's content.
Under the terms of the deal, OpenAI is committed to paying Dotdash Meredith at least $16 million annually, with additional variable payments based on content usage.
The financial details of this agreement were disclosed in IAC's quarterly results, highlighting a revenue increase attributed to the partnership.
Following the announcement of the partnership, Dotdash Meredith reported a notable rise in licensing revenue, increasing by $4.1 million year-over-year in Q3 2024.
These licensing agreements have sparked concerns among publishers without similar deals, as they risk losing out on potential licensing revenue and visibility in OpenAI's products.
Dotdash Meredith joins a growing list of publishers, including Axel Springer and The Financial Times, who are monetizing their content through partnerships with AI companies.
The structure of OpenAI's agreements typically includes a fixed payment for archival content and a variable component based on usage, with the specifics for Dotdash Meredith's variable payment still pending.
This partnership is part of a broader trend, as OpenAI has secured similar deals with major publishers, including a reported $250 million agreement with News Corp.
Summary based on 4 sources
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Sources
Adweek • Nov 18, 2024
OpenAI Is Paying Dotdash Meredith At Least $16 Million to License Its Content