California lawmakers this week reached agreement with Google to funnel millions of public and private dollars to newsrooms across the state, warding off legislation — for now — that would have forced tech giants to pay news outlets to post their work.
But the deal earned fast criticism from some Democrats and media unions who said it didn’t go far enough. The $100 million or so that Google has committed over five years equates to the amount of revenue the search giant generates in about 30 minutes. Google has agreed to pay much more — about $70 million annually — to bolster Canadian newsrooms.
California’s legislative session is scheduled to wrap up next week, but this is one fight that’s likely to return to Sacramento in the future. The state that is home to the world’s largest tech companies is still debating the balance between spurring innovation and crafting regulation.
Backers of cryptocurrency have spent more than $119 million on federal elections this year, representing about half of all corporate dollars given to candidates and PACs. Only the fossil fuel industry has spent more on politics in the past several cycles. Read more at The Hill.
Trump launches crypto project
Former President Trump rolled out a cryptocurrency project called “The DeFiant Ones,” though he offered few details. Trump’s sons Eric and Donald Jr. have both been big crypto fans, and the former president headlined a Bitcoin conference in Nashville last month. Read more at The Hill.
Chinese firms use Amazon to access chips
State-linked Chinese entities are using cloud services to access advanced U.S. chips and artificial intelligence they cannot otherwise reach. Providing access to chips or advanced AI models through a cloud does not violate U.S. regulations on exporting advanced chips to China. Read more at Reuters.
IN BUSINESS THIS WEEK
Chick-fil-A eyes streaming service
The nationwide chicken chain Chick-fil-A is working with producers to create family-friendly shows for a forthcoming streaming service, set to launch later this year. Other non-entertainment companies like Lyft and Airbnb have produced their own shows. Read more at The Hill.
Condé Nast signs OpenAI deal
The media conglomerate behind Vanity Fair, The New Yorker and WIRED has signed a multi-year deal with OpenAI that will allow the artificial intelligence giant to use its content. CEO Roger Lynch said the deal would help make up for lost revenue. Read more at The Hill.
Reddit to top $1 billion in ads
Reddit is projected to reach $1.1 billion in ad revenue this year, the first time the tech firm has crossed ten figures. Reddit sells ads against user interests, rather than based on user data. Read more at Bloomberg.
Attorneys general in 10 states have joined 29 other states and the Justice Department in an antitrust lawsuit against Ticketmaster and its parent company Live Nation. The lawsuit accuses the firms of blocking competition in the live events business. Read more at The Hill.
California age verification bill dead
Legislation that would require adult websites to verify user ages has died in California’s Senate Appropriations Committee. The bipartisan bill passed the Assembly unanimously earlier this year. Read more at CalMatters.
ON OUR RADAR
August 26: The VMware Explore conference kicks off in Las Vegas.
August 28: NVDIA, CrowdStrike and SalesForce report second quarter earnings.
Do this …
New research from Northwestern University shows mild electric currents can help protect marine coastlines from erosion. Light electric current can change the structure of marine sand into an immoveable solid, the researchers found, in a strategy that could guard coastal communities. Read more at Phys.org.
Don’t do this …
The telecom firm that transmitted AI-generated robocalls mimicking President Biden’s voice will pay a $1 million fine, the Federal Communications Commission said this week. The Democratic strategist behind the robocalls faces a $6 million proposed fine. Read more at The Hill.
