Axios is expanding its local newsletter presence from 30 to 34 cities. The catch? OpenAI is funding it. In its continued pretense of benefiting newsrooms, OpenAI has partnered with Axios in a three-year deal to cover Pittsburgh, Pennsylvania; Kansas City, Missouri; Boulder, Colorado; and Huntsville, Alabama. What does OpenAI get in exchange for its funding? Oh, just the ability to use Axios content to answer users' questions.
Like the close to 20 newsrooms that OpenAI has already partnered with, Axios seems to have forgotten that the scorpion did end up stinging the frog. Instead, we have this starry-eyed statement from Axios co-founder and CEO Jim VandeHei: "We launched Axios Local nearly four years ago with the bold goal of bringing local news to communities across the country. OpenAI’s investment allows us to continue our expansion and aid us in bringing essential local news to deserving audiences."
Axios will be able to use OpenAI's technology to create its own AI-powered systems and products. However, VandeHei issued a memo to employees stating the aforementioned technology won't be used for reporting stories (sure, because no one has been laid off in favor of AI before — oh wait, wait some more and the list continues). The Axios announcement does, however, point out that The New York Times is currently suing both OpenAI and Microsoft for copyright infringement, so maybe there's some awareness of what its entering into.
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