Google avoids “link tax” bill with deal to fund California journalism and AI

Google has agreed to fund local journalism and an artificial intelligence initiative in California as part of a deal that would reportedly result in lawmakers shelving a proposal to require Google to pay news outlets for distributing their content. But the deal's state financing requires legislative approval as part of California's annual budget process and is drawing criticism from some lawmakers and a union for journalists.

Governor Gavin Newsom is on board, saying that the "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." The deal "will provide nearly $250 million in public and private funding over the next five years, with the majority of funding going to newsrooms," said an announcement by Assemblymember Buffy Wicks, a Democrat.

A "News Transformation Fund" would be created with funding from the state and Google and be administered by the UC Berkeley School of Journalism. The state would contribute $30 million the first year and $10 million in each of the next four years, according to a summary provided to Ars by Wicks' office.