Newsday awarded $500G Lenfest grant for AI data journalism tool powered by OpenAI, Microsoft

Newsday Media Group has been chosen for a $500,000 grant to develop an artificial intelligence tool that will enable its journalists, readers and businesses to access and analyze data about Long Island, officials announced on Tuesday.

Newsday is among five independently owned media organizations in the first group of participants for the Lenfest Institute of Journalism’s AI Collaborative and Fellowship Program. The program was established by Lenfest, a Philadelphia-based nonprofit that owns the Philadelphia Inquirer and works to strengthen local news outlets through programs and grant funding, according to CEO Jim Friedlich.

He said the AI initiative is being paid for by ChatGPT developer OpenAl and computer software giant Microsoft Corp. Each is contributing $2.5 million in cash, plus $2.5 million in credits for use of their respective software — for a total of $10 million.

"Newsday and the other participants will create AI products, gain insights and engage in engineering activities that will help all newspapers," Friedlich said in an interview. "Participants will function as test kitchens, learning from each other and sharing their knowledge to better serve their readers, their communities — and to become stronger businesses."

Besides Newsday, the grantees are the Minnesota Star Tribune, Philadelphia Inquirer, Seattle Times and Chicago Public Media, owner of WBEZ radio and the Chicago Sun-Times. Newsday is owned by Patrick Dolan.

The grantees were selected from a field of eight applicants. Three additional grantees will be announced later, according to Friedlich. Each recipient will use their grant money to hire a "two-year AI fellow" who will work on the recipient’s project.

"We were drawn to the Newsday proposal because it makes public data [about Long Island] accessible in the public interest and creates a product to bring in new revenue," he said, referring to a data service that will help businesses for their market research and other uses.

Newsday publisher Debby Krenek, in a memo to the staff, said, "This project will help our reporters find stories in our data that are powerful and meaningful to our audience, and help our audience quickly access information from the data."

She added, "While Newsday will continue to adhere to our specific AI policy, we believe, as the Lenfest Institute does, that empowering local newsrooms like ours to explore AI usage while upholding the highest ethical standards can help sustain the future of local news."

In announcing the grants, OpenAI executive Tom Rubin said providers of local news are "particularly vulnerable" because of declines in newspaper circulation. "We believe AI can help [them to] thrive," he said.

Teresa Hutson, a Microsoft executive, agreed, saying in the announcement that the Lenfest program would "drive AI innovation that can help news organizations create new products to extend their reporting, find new sources of revenue and ultimately build a more sustainable future."

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.