AI Companies Now Top Buyers of Media Content They Once Threatened

Media companies that once feared artificial intelligence would devalue their content are discovering they hold leverage AI companies desperately need: trusted, high-quality material that cannot be replicated by algorithms alone.

At Axios House Cannes this week, media and commerce executives described how publishers have become essential suppliers to AI firms willing to pay for content licensing deals. People Inc. CEO Neil Vogel revealed his company has secured comprehensive licensing agreements with OpenAI and Meta, plus a more limited arrangement with Microsoft, and expects all three to renew.

Why it matters

Publishers spent decades building content brands based on editorial credibility and audience trust. Those same qualities—authenticity, reliability, human expertise—are precisely what AI systems lack and cannot synthesize on their own. This dynamic shifts bargaining power back to content creators in an industry that has struggled with platform dominance for years.

The scarcity advantage

Vogel framed the relationship in stark terms: "Scarcity is key. AI needs three things: a model, power and inputs. We are the inputs." This positioning acknowledges that while AI companies can build models and secure computing resources, they cannot manufacture the authoritative content that differentiates their products.

The licensing structures vary. Vogel described People Inc.'s deals as "all-you-can-eat" arrangements with OpenAI and Meta, compared to an "à la carte" setup with Microsoft, suggesting different commercial models are emerging as the market matures.

The blocking dilemma

Publishers face a technical constraint that limits their negotiating options. Vogel noted that companies cannot selectively block Google's AI crawlers without also blocking its search crawler, calling this "an abuse of market power." Since search traffic remains critical for advertising and affiliate revenue, publishers must weigh licensing opportunities against potential traffic losses.

Protecting the human element

Clea Shearer, co-founder of The Home Edit, draws a firm boundary around content creation. While her company uses AI for data analysis and research, she refuses to let it generate editorial content. "It doesn't replace personality [and] human connection," Shearer said. "I want to believe things are real… and I think that's what AI lacks in terms of actual content creation."

This distinction reflects a broader industry consensus that AI serves best as a tool for publishers rather than a replacement for their core editorial function.

Brand value in an AI era

Vogel argued the shift from digital distribution to brand definition represents the real transformation underway. At People Inc., editors-in-chief now define what brands represent across all platforms, not just which stories to publish. "In a world where things are increasingly fake and no one knows what's real, the value of the brand is going to increase," he said.

Raina Penchansky, co-founder and CEO of Digital Brand Architects, emphasized that cultural relevance and authentic brand building matter more than ownership structure when creating lasting media properties.

These details were first reported by Axios, with Sara Fischer and Kerry Flynn moderating the June 23 discussions in Cannes.