California Announces New Deal with Tech to Fund Journalism, AI Research

A screen shows the logo and a ticker symbol for The Walt Disney Company on the floor of the New York Stock Exchange (NYSE) in New York, US, December 14, 2017. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights
A screen shows the logo and a ticker symbol for The Walt Disney Company on the floor of the New York Stock Exchange (NYSE) in New York, US, December 14, 2017. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights
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California Announces New Deal with Tech to Fund Journalism, AI Research

A screen shows the logo and a ticker symbol for The Walt Disney Company on the floor of the New York Stock Exchange (NYSE) in New York, US, December 14, 2017. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights
A screen shows the logo and a ticker symbol for The Walt Disney Company on the floor of the New York Stock Exchange (NYSE) in New York, US, December 14, 2017. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights

California will be the first US state to direct millions of dollars from taxpayer money and tech companies to help pay for journalism and AI research under a new deal announced Wednesday.

Under the first-in-the-nation agreement, the state and tech companies would collectively pay roughly $250 million over five years to support According to The AP, California-based news organization and create an AI research program. The initiatives are set to kick in in 2025 with $100 million the first year, and the majority of the money would go to news organizations, said Democratic Assemblymember Buffy Wicks, who brokered the deal.

“This agreement represents a major breakthrough in ensuring the survival of newsrooms and bolstering local journalism across California — leveraging substantial tech industry resources without imposing new taxes on Californians,” Gov. Gavin Newsom said in a statement. “The deal not only provides funding to support hundreds of new journalists but helps rebuild a robust and dynamic California press corps for years to come, reinforcing the vital role of journalism in our democracy.”

Wicks' office didn't immediately answer questions about specifics on how much funding would come from the state, which news organizations would be eligible and how much money would go to the AI research program.

The deal effectively marks the end of a yearlong fight between tech giants and lawmakers over Wicks' proposal to require companies like Google, Facebook and Microsoft to pay a certain percentage of advertising revenue to media companies for linking to their content.

The bill, modelled after a legislation in Canada aiming at providing financial help to local news organizations, faced intense backlash from the tech industry, which launched ads over the summer to attack the bill. Google also tried to pressure lawmakers to drop the bill by temporarily removing news websites from some people's search results in April.

“This partnership represents a cross-sector commitment to supporting a free and vibrant press, empowering local news outlets up and down the state to continue in their essential work," Wicks said in a statement. “This is just the beginning.”

California has tried different ways to stop the loss of journalism jobs, which have been disappearing rapidly as legacy media companies have struggled to profit in the digital age. More than 2,500 newspapers have closed in the US since 2005, according to Northwestern University’s Medill School of Journalism. California has lost more than 100 news organizations in the past decade, according to Wicks' office.

The Wednesday agreement is supported by California News Publishers Association, which represents more than 700 news organizations, Google’s corporate parent Alphabet and OpenAI. But journalists, including those in Media Guild of the West, slammed the deal and said it would hurt California news organizations.

State Sen. Steve Glazer, who authored a bill to provide news organizations a tax credit for hiring full-time journalists, said the agreement “seriously undercuts our work toward a long term solution to rescue independent journalism.”

State Senate President Pro Tempore Mike McGuire also said the deal doesn't go far enough to address the dire situation in California.

“Newsrooms have been hollowed out across this state while tech platforms have seen multi-billion dollar profits,” he said in a statement. “We have concerns that this proposal lacks sufficient funding for newspapers and local media, and doesn’t fully address the inequities facing the industry.”



Volkswagen Workers to Go on Warning Strikes Across Germany

The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo
The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo
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Volkswagen Workers to Go on Warning Strikes Across Germany

The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo
The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo

Volkswagen workers will go on warning strikes on Monday at plants across Germany, labor union IG Metall said, marking the first large-scale walkouts at Volkswagen's domestic operations since 2018.

The start of the strikes represents a further escalation of a dispute between Europe's top carmaker and its workers over mass layoffs, pay cuts and possible plant closures - drastic measures the company says it cannot rule out in the face of Chinese competition and cooling consumer demand.

Labor representatives at VW had on Nov. 22 voted for limited strikes at German operations from early December after talks over wages and plant closures failed to achieve a breakthrough, Reuters reported.

"If necessary, this will be the toughest collective bargaining battle Volkswagen has ever seen," IG Metall negotiator Thorsten Groeger said in a statement.

The carmaker said it continues to rely on constructive dialogue to find a sustainable solution.

"Volkswagen respects the right of employees to take part in a warning strike," a spokesperson said in reply to the union's announcement, adding that the company had taken steps in advance to ensure a basic level of supplies to customers and minimise the impact of the strike.

Warning strikes in Germany usually last from a few hours.

The union had last week proposed measures it said would save 1.5 billion euros ($1.6 billion), including forgoing bonuses for 2025 and 2026, which Europe's top carmaker dismissed.

Volkswagen has demanded a 10% wage cut, arguing it needs to slash costs and boost profit to defend market share in the face of cheap competition from China and a drop in European car demand.

The company is threatening to close plants in Germany for the first time in its 87-year history.

"Volkswagen has set fire to our collective agreements and instead of extinguishing this fire in three collective bargaining sessions, the management board is throwing open barrels of petrol into it," Groeger said.

An agreement not to stage walkouts had ended on Saturday, IG Metall said, enabling workers to carry out warning strikes from Sunday across VW AG's German plants.

"Warning strikes will start at all plants from Monday. How long and how intensive this confrontation needs to be is Volkswagen's responsibility at the negotiating table," Groeger said.

Labor representatives and management will meet again on Dec. 9 to carry on negotiations over a new labor agreement for workers at the German business - VW AG - with unions vowing to resist any proposals that do not provide a long-term plan for every VW plant.