Associated Press Pivots to AI, Offers Buyouts

Associated Press, a prominent news organization, is undergoing a major transformation by offering buyouts to its U.S.-based journalists, with over 120 staff members receiving offers. This move is part of a strategic pivot away from its historical focus on newspaper journalism, which now accounts for only 10% of its revenue, down 25% in the last four years. The company, led by Julie Pace and Kristin Heitmann, is increasing its focus on visual journalism and developing new revenue sources, particularly from technology and AI companies. Associated Press has seen a 200% growth in revenue from technology companies over the past four years, securing deals with entities like OpenAI for text archives, Snowflake Inc. for data licensing, and Alphabet Inc. (Google) for news delivery via the Gemini chatbot. Additionally, Associated Press agreed to sell U.S. elections data to Kalshi and has seen a 30% increase in election data customers, including The Walt Disney Company — American Broadcasting Company, Paramount Global — CBS, NBCUniversal — NBC, and CNN. The News Media Guild has expressed concerns about the buyouts and Associated Press's engagement with AI, claiming the company ignored requests to bargain over AI. This transformation comes as traditional newspaper publishers like USA Today Co., McClatchy, and Adani Enterprises have either dropped Associated Press services or are seeking early exits from contracts.