The actual payment could be higher, as the $16 million figure only reflects the "fixed" costs. According to a recent earnings call, IAC, Dotdash Meredith's parent company, will account for the "additional" costs in the future.

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OpenAI was previously accused of using unlicensed content to train ChatGPT. (Image: Engadget)

"Looking at Q3 2024, licensing revenue increased by approximately $4.1 million year-over-year. The majority of this revenue came from the licensing agreement with OpenAI," said CFO Chris Halpin. "This is a good portion of revenue that we are recording. Furthermore, any incurred costs will be factored into future business results."

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

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

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

OpenAI's agreement to pay licensing fees for content is a positive sign for publishers, especially since major media figures like The New York Times and Hollywood actors have recently accused the company that owns ChatGPT of exploiting and using their content without permission and payment.

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

(According to Engadget)

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