The actual payout could be higher, as the $16 million represents only “fixed” costs. According to a recent earnings call from IAC, parent company of Dotdash Meredith, the “incurred” costs will be accounted for in the future.

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OpenAI was once accused of using unlicensed content to train ChatGPT. Photo: Engadget

“Looking at Q3 2024, licensing revenue increased by approximately $4.1 million year-over-year, with the majority of that revenue coming from the OpenAI licensing agreement,” said CFO Chris Halpin. “That’s a good portion of the revenue that we’re recognizing. And the costs that we’re incurring will be accounted for and recognized in future results.”

In parallel with licensing content to OpenAI to train ChatGPT, Dotdash Meredith also uses the AI ​​company's models to enhance the targeted marketing power of its internal tools.

As part of the deal, ChatGPT will display content and links from various publications published by Dotdash Meredith.

These publications include popular websites such as Investopedia, Food & Wine, InStyle, Better Homes & Gardens, Lifewire and many more.

OpenAI's agreement to pay licensing fees for its content is a positive sign for publishers, as recently, big names in the media from The New York Times to Hollywood actors have accused the company that owns ChatGPT of exploiting and using content without licensing and paying fees.

In addition to Dotdash Meredith, the Financial Times is understood to have a similar deal with OpenAI, along with book publisher HarperCollins.

(According to Engadget)

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