Broadcom Secures Major Wins With OpenAI, Google, Meta As It Targets $150B AI Market

Alphabet Inc.’s Google has agreed to a deal with California to fund newsrooms in the state, thereby putting an end to proposed legislation that would have required tech giants to pay for news content. However, the deal has been met with criticism from journalist unions.

What Happened: The deal, announced on Wednesday, involves a $250 million commitment over five years from Google and the state, with the majority of the funds going to California newsrooms. The agreement also includes the launch of an artificial intelligence “accelerator” to support journalists’ work, CNN reported.

This arrangement effectively puts an end to the California Journalism Preservation Act, a bill that would have compelled technology companies, including Google and Meta Platforms Inc. , to pay news organizations for the distribution of their content online.

State assembly member Buffy Wicks described the deal as a way for California to continue championing the crucial role of journalism in democracy. California Governor Gavin Newsom also praised the deal, calling it “a major breakthrough in ensuring the survival of newsrooms.”

However, the agreement faced immediate backlash from journalist unions, who labeled it “disastrous.” The Media Guild of the West and The NewsGuild-CWA criticized the deal, arguing it was made without their involvement and questioning its effectiveness.

See Also: NBA Legend Shaq Missed His Tesla Cybertruck So Much, Instead Of Shipping It From Vegas To Atlanta, He Reportedly Ordered One More

Why It Matters: The deal comes at a time when the journalism industry is grappling with significant challenges, including the shift of advertising dollars and audiences away from traditional publications.

The deal also includes the establishment of a “National AI Innovation Accelerator,” which some journalist groups have warned could pose a threat to the future of their industry.

A recent report revealed that more than half of Fortune 500 companies have flagged AI as a major risk, marking a 473.5% surge in warnings amid growing concerns about the potential risks associated with artificial intelligence.

Meanwhile, OpenAI, the maker of ChatGPT, recently forged a content partnership with Condé Nast, incorporating content from brands like Vogue and The New Yorker into its products. This move was seen as a way to ensure that as AI plays a larger role in news discovery and delivery, it maintains accuracy, integrity, and respect for quality reporting.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

This week marks 20 years since Alphabet GOOGL went public with the holding company being one of the most innovative firms of the 21st Century.

Formerly known as Google, the iconic search engine pioneer has evolved to cloud computing, ad-based video and music streaming, autonomous vehicle production, and healthcare developments among other endeavors.

Alphabet has also made significant investments in artificial intelligence and machine learning technologies through its Google research team Brain.

Lucrative acquisitions have fueled Alphabet’s growth with its stock up +19% year to date and skyrocketing over +6,000% since going public in 2004 which has dwarfed the gains of the S&P 500 and Nasdaq.

Alphabet’s Acquisition History

Along the way to being a tech behemoth, Alphabet has acquired over 200 companies with the largest being the $12.5 billion acquisition of Motorola Mobility in 2012. This acquisition was aimed at accelerating innovation and choice in mobile computing and played a crucial role in implementing the Google Android ecosystem, the largest rival to Apple’s AAPL iPhone iOS.

Other Lucrative Acquisitions

Where 2 Technologies (Acquired in 2004 for an estimated $400 million and led to the creation of Google Maps)

YouTube (Acquired in 2006 for $1.65 billion) - Video and music streaming platform

DoubleClick (Acquired in 2007 for $3.1 billion and implemented into Google Marketing)

Waze (Acquired in 2013 for $966 million) -Traffic and navigation app

Nest Labs (Acquired in 2014 for $3.2 billion) - Smart home products

DeepMind (Acquired in 2014 for $500 million and merged with Brain in regards to AI development)

Twitch (Acquired in 2014 for $970 million) - Live streaming platform for gamers

Looker (Acquired in 2019 for $2.6 billion to provide business intelligence software and data analytics in Google Cloud)

Fitbit (Acquired in 2019 for $2.1 billion) - Wearable fitness devices and app

Mandiant (Acquired in 2022 for $5.4 billion) - Independent cybersecurity services also implemented in Google Cloud

Stock Split History

Alphabet’s brilliant performance has led to the company splitting its stock twice in its history, the most recent being a 20-1 stock split in July of 2022.

The first stock split was a 2-1 split in March of 2014. This split also created two classes for shareholders, Class C shares with no voting rights under the ticker symbol GOOG and Class A for shareholders with voting rights under the new ticker symbol GOOGL.