California will become the first state in the U.S. to invest both taxpayer dollars and contributions from technology companies in journalism and artificial intelligence (AI) research, the result of a landmark agreement announced Wednesday.

The deal, which represents a significant development at the intersection of technology and media, will see the state and the tech giants collectively raise about $250 million over the next five years to support California-based news organizations and build an AI research program.

This initiative is scheduled to begin in 2025 with an initial investment of $100 million, with the majority of these funds earmarked for news organizations.

The aim of the agreement is to provide crucial financial support to local journalism, which has struggled in recent years, while also promoting AI research that could have far-reaching implications for the industry.

Governor Gavin Newsom said the agreement represents a significant step forward in securing the future of journalism in California. By leveraging resources from the technology industry without raising taxes on Californians, the agreement is designed to revitalize local newsrooms and rebuild a strong California press.

The governor stressed the importance of journalism for a functioning democracy and expressed confidence that this initiative would help ensure its survival in the state.

The agreement effectively ends a long-running conflict between California lawmakers and technology companies that was sparked by a proposal from Rep. Wicks. Her original bill would have required companies like Google, Facebook and Microsoft to pay a percentage of their advertising revenue to media companies when they link to their content.

That proposal, modeled on a similar bill in Canada, faced fierce opposition from the tech industry. Over the summer, tech companies launched ad campaigns to discredit the bill, and Google even temporarily removed news sites from some users’ search results to pressure lawmakers to abandon the proposal.

Wicks called the partnership a groundbreaking cross-industry commitment to preserve a free and vibrant press in California. She sees this agreement as a first step toward empowering local news organizations to continue their important work and ensuring that journalism remains an integral part of the state’s social fabric.

California is battling a rapid decline in journalism jobs, a trend that has accelerated as traditional media companies struggle to adapt to the digital age. More than 2,500 newspapers have closed in the U.S. since 2005, according to Northwestern University’s Medill School of Journalism. In California alone, more than 100 news organizations have disappeared in the past decade, underscoring the urgent need for intervention.

The agreement was supported by key players, including the California News Publishers Association, which represents more than 700 news organizations, Google’s parent company Alphabet, and OpenAI. However, the deal also drew criticism from some quarters. Journalists, particularly those associated with the Media Guild of the West, expressed concern that the agreement could hurt rather than help California news organizations.

State Senator Steve Glazer had previously proposed a bill to give news organizations tax breaks when hiring full-time journalists, arguing that the agreement undermines efforts to find a long-term solution to save independent journalism.

Senate President Mike McGuire also voiced his concerns, saying that while tech platforms continue to make significant profits, newsrooms across California have been decimated. He questioned whether the funds and measures included in the agreement would be enough to address the deep challenges facing the industry.

As California moves forward with this groundbreaking initiative, the agreement’s success in supporting journalism and advancing AI research both within the state and beyond will be closely watched.