Business
Get paid or sue? How the news business is combating the threat of AI
Journalist Javier Cabral wanted to test Google’s much-hyped, experimental artificial intelligence-powered search results. So he typed out a question about a topic he knew intimately: the Long Beach bakery Gusto Bread’s coffee.
In less than a second, Google’s AI summarized information about the bakery in a few sentences and bullet points. But according to Cabral, the summary wasn’t original — it appeared to be lifted from an article he wrote last year for the local food, community and culture publication L.A. Taco, where he serves as the editor in chief. For a previous story, he’d spent at least five days working on a feature about the bakery, arriving at 4 a.m. to report on the bread making process.
As Cabral saw it, the search giant’s AI was ripping him off.
“The average consumer that just wants to go check it out, they’re probably not going to read [the article] anymore” Cabral said in an interview. “When you break it down like that, it’s a little enraging for sure.”
The rise of AI is just the latest existential threat to news organizations such as Cabral’s, which are fighting to survive amid a rapidly changing media and information environment.
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1. L.A. Taco editor Javier Cabral in the alleyway behind the Figueroa Theatre in Los Angeles in 2020. (Mariah Tauger / Los Angeles Times) 2. The L.A. Taco office in Los Angeles on June 26. (Zoe Cranfill / Los Angeles Times)
News outlets have struggled to attract subscribers and advertising dollars in the internet age. And social media platforms such as Facebook, which publishers depended on to get their content to a massive audience, have largely pivoted away from news. Now, with the growth of AI thanks to companies including Google, Microsoft and ChatGPT maker OpenAI, publishers fear catastrophic consequences will result from digital programs automatically scraping information from their archives and delivering it to audiences for free.
“There’s something that’s very fundamentally unfair about this,” said Danielle Coffey, president and chief executive of the News/Media Alliance, which represents publications including the New York Times and the Los Angeles Times. “What will happen is there won’t be a business model for us in a scenario where they use our own work to compete with us, and that’s something we’re very worried about.”
Tech companies leading the charge on AI say their tools are not engaged in copyright infringement and can drive traffic to publishers.
Google said in a statement that it designed its AI Overviews — the summaries that appear when people enter search queries — to “provide a snapshot of relevant information from multiple web pages.” The companies also provide links with the summaries so people can learn more.
AI and machine learning could provide useful tools for publishers when doing research or creating reader recommendations. But for many journalistic outlets, the AI revolution represents yet another consequence of the tech behemoths becoming the middlemen between the content producers and their consumers, and then taking the spoils for themselves.
“For the past 20 years, big tech has dictated the business model for news by essentially mandating how news is distributed, either through search or social, and this has turned out to be pretty disastrous for most news organizations,” said Gabriel Kahn, a professor at USC’s Annenberg School for Communication and Journalism.
L.A. Taco operates on a tight budget; its publisher doesn’t take a salary. The site makes most of its money through memberships, so if people are getting the information directly from Google instead of paying to read L.A. Taco’s articles, that’s a major problem. Above, a staff meeting at its Chinatown office.
(Zoe Cranfill / Los Angeles Times)
To respond to the problem, news organizations have taken dramatically different approaches. Some, including the Associated Press, the Financial Times and News Corp., the owner of the Wall Street Journal and Dow Jones, have signed licensing deals to allow San Francisco-based OpenAI to use their content in exchange for payment. Vox Media and the Atlantic have also struck deals with the firm.
Others have taken their fights to court.
The New York Times in December sued OpenAI and Microsoft, alleging that both companies used its articles to train their digital assistants and share text of paywalled stories to its users without compensation. The newspaper estimated that those actions resulted in billions of dollars in damages.
Separately, last month Forbes threatened legal action against AI startup Perplexity, accusing it of plagiarism. After receiving Forbes’ letter, Perplexity said it changed the way it presented sources and adjusted the prompting for its AI models.
The company said it has been developing a revenue sharing program with publishers.
The New York Times said in its lawsuit that its battle against AI isn’t just about getting paid for content now; it’s about protecting the future of the journalism profession.
“With less revenue, news organizations will have fewer journalists able to dedicate time and resources to important, in-depth stories, which creates a risk that those stories will go untold,” the newspaper said in its lawsuit. “Less journalism will be produced, and the cost to society will be enormous.”
OpenAI said that the New York Times’ lawsuit was without merit and that it has been unable to reproduce examples the newspaper has cited of ChatGPT regurgitating paywalled articles. The company said publishers have a way to opt out of their sites being used to train AI tools. Microsoft did not respond to a request for comment.
The Associated Press, the Financial Times and News Corp., the owner of the Wall Street Journal and Dow Jones, have signed licensing deals to allow San Francisco-based OpenAI to use their content in exchange for payment.
(Michael Dwyer / Associated Press)
“Microsoft and OpenAI have the process entirely backwards,” Davida Brook, a partner at law firm Susman Godfrey, which is representing the New York Times, said in a statement. “Neither The New York Times nor other creators should have to opt out of having their works stolen.”
The legal war is spreading. In April, eight publications owned by private equity firm Alden Global Capital also accused OpenAI and Microsoft of using and providing information from its news stories without payment.
In some cases, OpenAI’s chat tool provided incorrect information attributed to the publications, Frank Pine, executive editor for MediaNews Group and Tribune Publishing, said in a statement. For example, according to Pine, OpenAI said that the Mercury News recommended injecting disinfectants to treat COVID-19 and the Denver Post published research suggesting that smoking cures asthma. Neither publication has made such claims.
“[W]hen they’re not delivering the actual verbatim reporting of our hard-working journalists, they misattribute bogus information to our news publications, damaging our credibility,” Pine said.
OpenAI said that it was “not previously aware” of Alden’s concerns and that it is “actively engaged in constructive partnerships and conversations with many news organizations around the world to explore opportunities, discuss any concerns, and provide solutions.”
One such partnership is OpenAI’s recent deal with News Corp., which allows the tech company’s tools to display content from news outlets in response to user questions and access content from the Wall Street Journal, New York Post and publications in the United Kingdom and Australia to train its AI models. The deal was valued at more than $250 million over five years, according to the Wall Street Journal, which cited unnamed sources. News Corp and OpenAI declined to comment on the financial terms.
“This landmark accord is not an end, but the beginning of a beautiful friendship in which we are jointly committed to creating and delivering insight and integrity instantaneously,” Robert Thomson, chief executive of News Corp. said in a statement.
“We are committed to a thriving ecosystem of publishers and creators by making it easier for people to find their content through our tools,” OpenAI said in a statement.
Although OpenAI has cut deals with some publishers, the tech industry has argued that it should be able to train its AI models on content available online and bring up relevant information under the “fair use” doctrine, which allows for the limited reproduction of content without permission from the copyright holder.
“As long as these companies aren’t reproducing verbatim what these news sites are putting out, we believe they are well within their legal rights to offer this content to users,” said Chris MacKenzie, spokesman for Chamber of Progress, an industry group that represents companies including Google and Meta. “At the end of the day, it’s important to remember that nobody has a copyright on facts.”
But outlets including the New York Times reject such fair-use claims, arguing that in some cases the chatbots do reproduce their content, unfairly profiting from their thoroughly researched and fact-checked work. The situation is even more difficult for smaller outlets such as L.A. Taco, which can’t afford to sue OpenAI or develop their own AI platforms.
Located in L.A.’s Chinatown with four full-time workers and two part-timers, L.A. Taco operates on a tight budget; its publisher doesn’t take a salary. The site makes most of its money through memberships, so if people are getting the information directly from Google instead of paying to read L.A. Taco’s articles, that’s a major problem.
Legislation is another potential way to deal with big tech’s disruption of the journalism industry. The California News Publishers Assn., of which the Los Angeles Times is a member, is sponsoring a state bill known as the California Journalism Preservation Act, which would require digital advertising giants to pay news outlets for accessing their articles, either through a predetermined fee or through an amount set by arbitration. Most publishers would have to spend 70% of the funds received on journalists’ salaries. Another bill lawmakers are considering would tax large tech platforms for the data they collect from users and pump the money into news organizations by giving them a tax credit for employing full-time journalists.
“The way out of this is some type of regulation,” USC’s Kahn said. “Congress can’t get anything done so that basically gives these platforms free rein to do what they want with very little consequence.”
Times editorial library director Cary Schneider contributed to this report.
Business
Nearly 60 gigawatts of U.S. clean power stalled, trade group finds
A total of 59 gigawatts of U.S. clean energy projects are facing delays at a time when demand for power from AI data centers is surging, according to a trade group study.
Developers are seeing an average delay of 19 months over issues such as long interconnection times, supply constraints and regulatory barriers, the American Clean Power Assn. said in a quarterly market report.
The backlog is happening despite the growing need for power on grids that are being taxed by energy-hungry data centers and increased manufacturing. The Trump administration has implemented a slew of policies to slow the build-out of solar and wind projects, including delaying approvals on federal lands.
The potential energy generation facing delays is the equivalent of 59 traditional nuclear reactors, enough to power more than 44 million homes simultaneously.
“Current policy instability is beginning to impact investor confidence and negatively impact project timelines at a time when demand is surging,” American Clean Power Chief Policy Officer JC Sandberg said in a statement.
Despite the hurdles, developers were able to bring more than 50 gigawatts of wind, solar and batteries online in 2025, accounting for more than 90% of all new power capacity in the U.S., the report found. Clean power purchase agreements declined 36% in 2025 compared with 2024, signaling that the build-out of clean power in the U.S. could be lower in the 2028 to 2030 time period, according to the report.
Chediak writes for Bloomberg.
Business
Feud between Vegas gambler and Paramount exec sparks $150-million fraud lawsuit
The high-stakes feud between Paramount Skydance President Jeff Shell and Las Vegas gambler and self-professed “fixer” Robert James “R.J.” Cipriani spilled into court on Monday.
Cipriani filed a lawsuit against Shell on claims of fraud and eight other counts, alleging that he reneged on an oral agreement to develop an English-language version of a Spanish music show that streams on Roku TV.
He is seeking $150 million in damages.
In the 67-page lawsuit, filed in Los Angeles County Superior Court, Cipriani claims that in exchange for providing “sophisticated, high-value crisis communications services, entirely without compensation” over 18 months, Shell had agreed to develop the show “Serenata De Las Estrellas,” (Star Serenade), but failed to do so. Cipriani and his wife were to be named as co-executive producers.
“This case arises from the oldest form of fraud: a powerful man took everything a less powerful man had to offer, promised to repay him, lied to him when he asked about it, and then refused to compensate him at all,” states the complaint.
Cipriani — who has producer credits on a 2020 documentary about Vegas, “Money Machine: Behind the Lies,” and the 2015 movie “Wild Card” — intended to make “Serenata” as a “lasting legacy for his mother,” Regina, saying the effort “has been the driving force and the most important thing consuming [Cipriani’s] entire life of almost sixty-five years,” according to the suit.
The show was inspired by a song that the Philadelphia-born Cipriani used to sing to his late mother when he was growing up.
The litigation is the latest twist in a simmering behind-the-scenes scandal that has left much of Hollywood slack-jawed.
For weeks, Cipriani had threatened to file a lawsuit against Shell, with the potential to derail his comeback at Paramount, three years after he lost his job as NBCUniversal’s chief executive over an inappropriate relationship with an underling.
Cipriani’s suit alleges Shell wasdesperate for help in quelling negative stories about him.
It also portrays him as someone who was indiscreet, allegedly sharing sensitive information during the period when the Ellison family, through Skydance Media, was preparing to close its deal to acquire Paramount and then was actively pursuing Warner Bros. Discovery to add to its growing entertainment and media empire.
The eventual rift between the unlikely pair began in August 2024. Patty Glaser, the high-powered entertainment litigator, convened a meeting between the two men.
During the meeting with Shell, the executive expressed to Cipriani his concern that emails and texts between him and Hadley Gamble, the CNBC anchor Shell had been involved with, would come out, saying “that would absolutely destroy me,” according to the suit.
Cipriani claims in his lawsuit Shell was facing “catastrophic personal exposure arising from his conduct toward yet another woman in the media industry,” similar to what had prompted his ouster from NBCUniversal and that he “solicited” his “crisis communications services.”
According to the suit, Cipriani was in a position to help him, having engaged in a “longstanding practice of exposing misconduct in the entertainment and media industries.”
Robert James “R.J.” Cipriani in Amazon Prime Video’s 2025 series “Cocaine Quarterback.”
(Courtesy of Prime)
A high-rolling blackjack player, Cipriani’s colorful résumé includes aiding the FBI in the arrest and conviction of USC athlete-turned global drug kingpin Owen Hanson, who was sentenced to 21 years in federal prison, and filing a RICO suit against Resorts World Las Vegas.
Leveraging his “unique media relationships and industry influence,” Cipriani said in his complaint that he provided Shell with “ongoing threat-monitoring and intelligence services,” and “took proactive steps to suppress, redirect, or neutralize” negative coverage against Shell before publication.
Cipriani said Shell expressed “effusive gratitude” to him after he planted a story about another entertainment industry figure “in order to divert media attention” away from Shell. “Thank you thank you thank you,” Shell wrote in a text to Cipriani, according to the lawsuit, which included a copy of the text.
During tense negotiations over Paramount’s streaming rights for the highly successful “South Park” franchise last summer, Shell allegedly asked to talk to Cipriani about the matter. Cipriani then “orchestrat[ed] the placement of a highly favorable news article,” that was “devastating to Shell’s and Paramount’s adversaries in the dispute,” the suit states.
After a story published in a Hollywood trade, Cipriani wrote to Shell on WhatsApp, “I’m the one that put the article out for you!!!” and “I didn’t want to tell you till it hit so you have plausible deniability.”
According to a message cited in the lawsuit, Shell responded, “I love you!!!! …Thank you Rj,” adding “I owe you dinner at least!”
Despite those boasts, Paramount ultimately paid “South Park” creators millions more than Skydance had intended. To remove obstacles from Skydance’s path to buy Paramount, the media company agreed to two blockbuster deals that include paying the “South Park” production company more than $1.25 billion to continue the cartoon — making it one of the richest deals in television history.
During the course of their relationship, Cipriani further alleges that Shell alerted him to a then-pending $7.7-billion Paramount deal for the rights to UFC fights, while Netflix “believed” it had a “handshake deal” for the same rights, according to the suit.
Cipriani disclosed in his lawsuit that he filed a whistleblower complaint with the Securities and Exchange Commission over the disclosure of material information, claiming that Shell told him that not even UFC President Dana White knew of the transaction. In a WhatsApp message cited in the lawsuit, Shell told Cipriani that the deal was “very hush, hush until we sign.”
While the gambler continued to provide his services to Shell gratis, their relationship began to sour.
Cipriani became enraged that Shell did not uphold his end of the alleged deal to help him with the TV show, viewing it as a slap to him and his mother.
In February, the pair met to resolve their growing dispute. According to the lawsuit, also in attendance was an unidentified entertainment attorney who had represented both men in separate matters.
Patty Glaser has been widely reported as having represented Shell and Cipriani. She introduced them in summer 2024, as The Times reported Saturday.
“We were presented with a draft complaint riddled with clear errors of fact and law,” Glaser said in a statement last week. “We will strongly respond.”
The February meeting did not go well.
Shell not only “refused to compensate” Cipriani, but also told him that he could not “assist” him “in obtaining a television show or other entertainment industry opportunity.”
Cipriani further alleged in his lawsuit that during their “failed summit,” Shell revealed his “disdain” for David Zaslav, the Warner Bros. Discovery CEO, and disclosed that Paramount intended to “sweeten” its pending hostile offer for the studio to fend off Netflix prior to announcing its intention to do so publicly.
After the meeting, Cipriani stated in his complaint that Shell’s attorney privately offered Cipriani a “$150,000 personal loan” to resolve the dispute.
Business
With a big $46-million opening for ‘Hoppers,’ Disney and Pixar see a return to form
Walt Disney Co. and Pixar’s “Hoppers” took the box office crown this weekend in an encouraging sign for the company’s original animated films.
The film generated $46 million in ticket sales in the U.S. and Canada, marking the highest domestic opening for an original animated movie since 2017’s “Coco,” according to studio estimates. The global box office total for “Hoppers” was $88 million.
The zany movie features a young environmental advocate who “hops” her consciousness into a robotic beaver and bands together with other woodland creatures to stop a planned freeway expansion through a glade.
The film is directed by Daniel Chong, who created the Cartoon Network animated series “We Bare Bears.”
The muscular debut for “Hoppers,” as well as the strong performance from Sony Pictures Animation’s “Goat” last month, has been a positive sign for audience interest in original animated films.
Since the pandemic, theatrical returns for animated sequels have far surpassed that of original films. Disney’s “Zootopia 2,” for instance, has grossed more than $1.8 billion in global box office revenue, with more than $426 million domestically. Disney and Pixar’s 2024 hit “Inside Out 2” also crossed more than $1.6 billion globally.
By contrast, Disney and Pixar’s 2025 original film “Elio” brought in about $154 million in worldwide box office revenue.
Original films are vital to Pixar’s future, as the Emeryville, Calif.-based studio built its reputation on its string of nearly uninterrupted original blockbuster hits, including 1995’s “Toy Story” and 2004’s “The Incredibles.”
Paramount Pictures and Spyglass Media Group’s “Scream 7” came in second at the box office with $17.3 million in its second weekend in theaters. Warner Bros. Pictures’ “The Bride!,” Sony’s “Goat” and Warner Bros.’ “Wuthering Heights” rounded out the top five at the box office, according to data from Comscore.
With several strong releases, as well as popular holdover films from 2025 that continue to bring in revenue, the first few months at the box office have been a notable improvement over last year’s dismal first quarter.
Domestic box office revenue so far is up more than 12% compared with the same time period in 2025, according to Comscore.
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