Amazon to Pay New York Times $20-$25 Million for AI Training Data

Amazon has agreed to pay the New York Times between $20 million and $25 million annually under a multiyear content licensing deal. The deal gives Amazon access to a wide range of New York Times content, including material from its core news site, cooking section, and The Athletic, which can be used to train AI models and power features like Alexa responses. This marks Amazon's first AI-related licensing agreement with a news publisher and The Times's first deal with a tech giant for AI training purposes.

Amazon (AMZN) has agreed to pay the New York Times (NYT) between $20 million and $25 million annually under a multiyear content licensing deal. The agreement, announced earlier in May without financial terms, grants Amazon access to a broad range of content from the New York Times, including material from its core news site, cooking section, and The Athletic. This content will be used to train AI models and power features like Alexa responses [1].

The deal marks Amazon's first AI-related licensing agreement with a news publisher and the New York Times' first deal with a tech giant for AI training purposes. The annual payment is approximately 1% of the Times' 2024 total revenue, offering insights into how publishers and AI companies are valuing news content amidst evolving consumer habits [1].

Amazon's access to New York Times content will enable it to enhance its AI capabilities, particularly in training models for its Alexa voice assistant. The integration of high-quality content from a reputable source like the New York Times can significantly improve the accuracy and relevance of Alexa's responses. The deal also underscores the growing trend of tech companies leveraging premium content to bolster their AI systems.

The New York Times has not provided a detailed comment on the deal beyond its initial announcement. Amazon has yet to respond to requests for comment from MT Newswires [1].

This agreement highlights the strategic importance of content licensing for AI training. As consumers increasingly rely on AI for information and services, the quality and relevance of the content used to train these models become critical. The deal between Amazon and the New York Times is a significant step in this direction, potentially setting a precedent for future partnerships between tech companies and news publishers.

References:

[1] https://finance.yahoo.com/news/market-chatter-amazon-pay-york-150120230.html