08:41 AM EDT, 08/22/2024 (MT Newswires) -- (Update with the company comment in sixth paragraph.)

Alphabet's (GOOG, GOOGL) Google ( GOOG ) has partnered with California lawmakers to boost local newsrooms and invest in an AI accelerator program in the state, multiple media sources reported late Wednesday.

California has shelved a bill requiring tech companies like Google ( GOOG ) to pay news outlets for online content and announced a partnership with the state, news publishers, major tech firms, and philanthropies to fund California newsrooms on Wednesday.

The partnership would channel nearly $250 million over five years, with $100 million allocated in the first year to support California-based news organizations, according to the reports.

"This agreement represents a major breakthrough in ensuring the survival of newsrooms and bolstering local journalism across California - leveraging substantial tech industry resources without imposing new taxes on Californians," Governor Gavin Newsom said.

The UC Berkeley School of Journalism would manage the funds through the News Transformation Fund.

"This public-private partnership builds on our long history of working with journalism and the local news ecosystem in our home state, while developing a national center of excellence on AI policy," said Kent Walker, president of Global Affairs for Alphabet.

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