The intersection of media and artificial intelligence has been a fertile ground for collaboration. A prime example is OpenAI’s partnership with Grupo PRISA and others last summer, aimed at leveraging relevant current events to enhance its system.
The latest development is OpenAI’s decision to fund Axios’ expansion into four cities of its choosing. This forms part of a larger agreement involving content and technology exchange, as revealed by both companies. This milestone marks the first time OpenAI has financed newsrooms as part of a deal with a publisher—although the concept itself is not entirely new.
This collaboration allows both companies to leverage their unique strengths. OpenAI, the company behind ChatGPT, will use Axios’ journalism to provide users with attributed summaries, quotes, and links to Axios stories. Meanwhile, Axios will gain access to OpenAI’s technology to develop its own AI-powered products, processes, and systems.
Jim VandeHei, Axios’ CEO, predicts that AI will play a critical role in scaling their local presence, potentially expanding to over 100 cities. Axios’ COO, Allison Murphy, and editor-in-chief, Aja Whitaker-Moore, have stated that this technology will help “build a system for creating, distributing, and monetizing our journalism.”
Axios is already in a strong position, currently publishing local newsletters from reporters on the ground in 30 U.S. cities, a number set to rise to 34 with this expansion. In 2024, these newsletters exceeded two million subscriptions, with the expectation that five of their local markets will become profitable by 2025.
OpenAI’s vision: a healthy news ecosystem
OpenAI asserts its commitment to supporting a healthy news ecosystem and delivering quality information to its users. However, given past conflicts with the tech sector, some media organizations remain cautious about forging partnerships with AI companies.
Highlighting its progress in local media investments, OpenAI pointed to a development center at Hearst Newspapers. This center uses OpenAI’s technology to offer personalized local dining recommendations for the San Antonio Express-News and the San Francisco Chronicle.
The evolution of such partnerships is under scrutiny, particularly as legal challenges loom. In 2023, The New York Times sued OpenAI and Microsoft for copyright infringement. While the verdict is still pending, the outcome could set significant precedents for the intersection of media and artificial intelligence.
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