News Corp Partners with OpenAI, Stock Surges in After-Hours Trading

After the stock market closed on Wednesday, there was a noticeable surge in demand for shares of News Corp (ticker: NWSA NWS), which could be attributed to the company's announcement of a multiyear global partnership with OpenAI.

What the Partnership Entails

In a significant development for the media and technology sectors, News Corp has declared a collaborative effort with OpenAI, the aim of which is to integrate News Corp's news content within OpenAI's offerings. This partnership not only involves sharing content but also extends to contributing News Corp's vast journalistic expertise to buttress the standards of journalism within OpenAI's diverse product portfolio.

OpenAI is set to have access to both current and historical content from News Corp's prominent publications, a list that encompasses heavyweights such as The Wall Street Journal, Barron's, MarketWatch, Investor’s Business Daily, and the New York Post. The agreement permits OpenAI to present News Corp's content when responding to user inquiries on ChatGPT, as well as to enhance the features of its products.

Leadership Remarks on the Partnership

OpenAI's CEO Sam Altman expressed excitement and pride in the partnership, underscoring the melding of journalistic integrity with technological advancement. Altman emphasized the aim to foster a future in which AI not only respects but also promotes and maintains high-quality journalism standards. This collaboration marks yet another important step for OpenAI in the realm of integrating AI with real-world information, following a recently announced partnership with Reddit.

Impact on News Corp's Stock

The announcement of the partnership has had immediate financial repercussions for News Corp, with the company’s stock price climbing 4.01% in after-hours trading, settling at $26.99. Notably, this uptick came close on the heels of other news, such as Nvidia's financial reporting and stock activity highlights.

In the current landscape where partnerships between tech companies and media firms are increasingly common, News Corp's deal with OpenAI stands as a testament to the converging paths of journalism and technology, and the stock market has responded favorably to this strategic move.

NewsCorp, OpenAI, Stock