California’s AI accelerator and news transformation fund launched

Last Updated on August 21, 2024 by BVN

Overview: California has established a first-in-the-nation partnership between the State, news publishers, major tech companies, and philanthropy to provide ongoing financial support to newsrooms across the state and launch a National AI Accelerator. The partnership will provide nearly $250 million in public and private funding over the next five years, with the majority of the funding going to local newsrooms. The initiative aims to support California-based state and local news organizations, particularly those serving California local news deserts, underserved and underrepresented communities, as well as outlets that prioritize California coverage. The partnership also aims to maximize artificial intelligence to tackle some of the most complex challenges facing society and strengthen the workforce through a new National AI Innovation Accelerator.

Ellen Perrault

On Thursday, August 21, Assemblymember Buffy Wicks (D-Oakland) announced the establishment of a first-in-the-nation partnership between the State, news publishers, major tech companies and philanthropy. 

In a press release Wicks unveiled two, multi-year initiatives that outline the parameters of these initiatives. The first will provide ongoing financial support to newsrooms across state amd the second will launch a National AI Accelerator.

Regina Wilson, Executive Director, California Black Media shared her thoughts about the importance of these initiatives. “California is leading the way with this first-in-the-nation investment to protect the press and sustain quality journalism. This fund will help news outlets and journalists adapt to a changing landscape with new tools and funding to embrace emerging technologies.”

Wilson stressed, “This is especially helpful for ethnic and community media which is comprised largely of under-resourced family businesses whose strongest connections are to their community.” 

Together, the  partnerships will provide nearly $250 million in public and private funding over the next five years. The majority of the funding is slated for local newsrooms. $100 million will be front loaded in the first year to kick-start the partnerships. There is also the possibility of the total investment increasing in the coming years if additional funding from private or state sources becomes available.

In support of the initiatives CA Governor Gavin Newsom declared, “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.”

“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,” Newsom added. 

Assemblymember Wicks authored AB 886 to help ensure the sustainability of local journalism, as  news outlets across the country continue downsizing and closing at alarming rates. A Northwestern University study published last year found an average of two and a half newspapers in the United States close every week. California has lost more than 100 newspapers in the last decade alone. Meanwhile, since 2005, our  nation has lost two-thirds of its newspaper journalists. 

Multi-faceted support

The new initiatives include what’s being described as “multi-faceted support” for publishers across California to address challenges that have impacted the depth and breadth of news coverage in the state. The initiatives will help ensure the sustainability of existing and new online publications. The initiatives place an emphasis on small, local outlets and community-facing journalism.

“As technology and innovation advance, it is critical that California continues to champion the vital role of journalism in our democracy,” said Assemblymember Buffy Wicks. “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. This is just the beginning. I remain committed to finding even more ways to support journalism in our state for years to come.”

California news publishers will be the beneficiaries of a News Transformation Fund, to be administered by the UC Berkeley School of Journalism, providing financial resources that preserve and expand California-based journalism. The funding will include contributions from technology platforms and the State of California, supporting innovative new investments that promote local journalism. 

The funding will support California-based state and local news organizations, particularly those serving California local news deserts, underserved and underrepresented communities, as well as outlets that prioritize California coverage.

“The University of California is proud to partner with Governor Newsom and legislative leaders to bolster the critical work of local news organizations and journalists in California,” said UC President Michael V. Drake, M.D. “Californians depend on robust local and diverse news organizations to stay informed about their communities, and the University and specifically the UC Berkeley School of Journalism stand ready to support this endeavor.”

Funding for the initiative will be complemented by direct support from the State. This support will help news organizations keep and grow newsroom staff and offsetting the costs of producing local news and information.

“A vibrant press is crucial for strong communities and a healthy democracy. This is a first step toward what we hope will become a comprehensive program to sustain local news in the long term, and we will push to see it grow in future years,” said California News Publishers Association CEO Chuck Champion and Board Chair Julie Makinen. “We will work with the state and tech companies to make the most of this initiative. We’re grateful to Assemblymember Wicks for her passionate advocacy on behalf of our 700-plus member newsrooms.”

The quest for official marketing and advertising support

Partners in this initiative also reiterated their strong commitment to strengthening newsroom and ownership diversity for ethnic and underserved communities. The Governor also announced his support for AB 1511 (Santiago), which aims to increase the state’s ongoing commitment to place official marketing, advertising and/or outreach advertising with local and underrepresented media outlets.

“Ethnic and community media outlets in California have a long history of serving as trusted messengers of culturally responsive news to historically underrepresented and underserved communities,” said Assemblymember Miguel Santiago. “These initiatives ensure that California is embracing private sector innovation while developing partnerships with and seeding investments from the public sector to empower local publishers and journalists that are vital to a healthy, thriving democracy.”

Maximizing Artificial Intelligence

The new initiatives will also give researchers and businesses access to new resources enabling them to explore the use of AI to tackle some of the most complex challenges facing society, and strengthen the workforce through a new National AI Innovation Accelerator. 

This effort be administered in collaboration with a private nonprofit, and will provide organizations across industries and communities — from journalism, to the environment, to racial equity and beyond — with financial resources and other support to experiment with AI to assist them in their work. 

The AI accelerator will empower organizations with the new technology, and complement the work of the Journalism Fund by creating new tools to help journalists access and analyze public information.

“We appreciate the thoughtful leadership of Governor Newsom, Assemblymember Wicks, Chair Umberg, and Senator Glazer on these issues,” said Kent Walker, President of Global Affairs and Chief Legal Officer for Alphabet. “California lawmakers have worked with the tech and news sectors to develop a collaborative framework to accelerate AI innovation and support local and national businesses and non-profit organizations. This public-private partnership builds on our long history of working with journalism and the local news ecosystem in our home state, while developing a national center of excellence on AI policy.”

Jason Kwon, Chief Strategy Officer for OpenAI affirmed, “A strong press is a key pillar of democracy, and we’re proud to be part of this partnership to utilize AI in support of local journalism across California.” 

State officials confirmed that work is expected to begin immediately as the initiatives are expected to go live in 2025.  to stand up both initiatives, which will go live in 2025.

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