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TechCrunch Disrupt Berlin 2019 - Day 2
Cloudflare cofounder and CEO Matthew Prince (Noam Galai/Getty Images)
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Could Cloudflare’s “pay per crawl” save news from AI?

The novel plan would let publishers control AI bot access and collect micropayments to access content.

Jon Keegan

AI is eating the news.

Publishers large and small are bracing for a grim reality that is starting to reveal itself: as readers increasingly turn to AI chatbots like ChatGPT for their queries, or skim over Google AI overviews, news publishers are seeing visits from search engines drop off a cliff.

AI companies have slurped up billions of web pages to train their models and fetch query results. Big publishers like The New York Times have filed suit against OpenAI and Microsoft, accusing the companies of stealing its content without permission or compensation. Many publishers have opted to cut deals with AI companies to license their work and appear in results.

While many of today’s chatbots surface citations with links in query responses, it generates a fraction of the traffic that traditional search engine results saw (and that was already in decline).

An unlikely company is stepping in with a novel solution to this problem that could provide a way for AI companies to crawl a publisher’s website with permission and pay for the access.

Cloudflare is a content delivery network — it ensures that customers’ websites, images, and videos will be accessible quickly around the world, sitting between the publisher and the web traffic hitting its site. That gives Cloudflare the unique ability to control who gets to see the content that it’s distributing. And while individual website owners can try to block AI bots from scraping their sites, Cloudflare can do it for billions of web pages at a time across 125 countries. The company says it serves about 20% of the web.

Cloudflare is introducing an experiment that it’s calling “pay per crawl,” which acts as a gatekeeper (and a toll booth) for AI bots crawling the web. Here’s how it works:

  • Cloudflare detects traffic that is coming not from a human user, but from an AI crawler.

  • Depending on a publisher’s choice, the “pay per crawl” system controls access to the site.

  • The AI bot can be allowed to access the site for free, it can pay to access the site, or it can be blocked altogether. Publishers can also tailor this to specific companies.

  • Cloudflare collects a micropayment from the AI bot, which it passes along to the publisher.

The pay per crawl plan is currently in private beta, and the company has also announced that all new Cloudflare customers will be set to block AI bots by default.

Cloudflare cofounder and CEO Matthew Prince wrote in a blog post declaring “Content Independence Day”:

“Instead of being a fair trade, the web is being stripmined by AI crawlers with content creators seeing almost no traffic and therefore almost no value. That changes today, July 1, what we’re calling Content Independence Day. Cloudflare, along with a majority of the world’s leading publishers and AI companies, is changing the default to block AI crawlers unless they pay creators for their content. That content is the fuel that powers AI engines, and so it’s only fair that content creators are compensated directly for it.”

The rub is that both AI companies and publishers need to opt in to the plan for payments to be processed, but several big publishers have signed up, including Condé Nast, Time, Associated Press, and The Atlantic, according to TechCrunch.

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WSJ: OpenAI plans Q4 IPO in race to be the first AI startup to enter public markets

OpenAI was the first to the generative AI market with ChatGPT, and now it hopes to be the first of its AI startup cohort to pull off an initial public offering, according to a report from The Wall Street Journal. The $500 billion startup is in a race against its $350 billion competitor Anthropic to IPO, who has also been exploring one.

According to the report, OpenAI is in talks with banks to try for a fourth-quarter IPO this year, which has the potential to be one of the largest IPOs ever, in a year that is expected to see many record breaking tech companies make tap into public markets to raise massive new rounds of capital.

Ahead of a potential public listing, OpenAI is reportedly attempting to raise a massive round of private investment. The company is reportedly aiming to raise $100 billion, with Amazon potentially accounting for up to half that target. Other investors in talks with OpenAI over the private fundraising round include Nvidia, Microsoft, and SoftBank.

According to the report, OpenAI is in talks with banks to try for a fourth-quarter IPO this year, which has the potential to be one of the largest IPOs ever, in a year that is expected to see many record breaking tech companies make tap into public markets to raise massive new rounds of capital.

Ahead of a potential public listing, OpenAI is reportedly attempting to raise a massive round of private investment. The company is reportedly aiming to raise $100 billion, with Amazon potentially accounting for up to half that target. Other investors in talks with OpenAI over the private fundraising round include Nvidia, Microsoft, and SoftBank.

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SpaceX is actually considering a merger with Tesla or xAI: Report

Bloomberg reports that Elon Musk’s SpaceX is considering merging with Musk’s Tesla. Earlier today, Reuters had reported that SpaceX was thinking of potentially merging with xAI ahead of SpaceX’s IPO this year.

From Bloomberg:

The firm has discussed the feasibility of a tie-up between SpaceX and Tesla, an idea that some investors are pushing, the people said, asking not to be identified as the information isn’t public. Separately, they are also exploring a tie-up between SpaceX and xAI ahead of an IPO, some of the people said.

Musk’s companies already have numerous relationships between themselves, including most recently Tesla’s $2 billion investment in xAI. At Tesla’s shareholder meeting last year, shareholders voted to invest in the company but the board didn’t approve the measure due to significant abstentions.

In 2024, SpaceX incurred about $2.4 million in expenses under commercial, licensing, and support agreements with Tesla, and Tesla incurred about $800,000 in expenses for Musk’s use of SpaceX’s jet.

From Bloomberg:

The firm has discussed the feasibility of a tie-up between SpaceX and Tesla, an idea that some investors are pushing, the people said, asking not to be identified as the information isn’t public. Separately, they are also exploring a tie-up between SpaceX and xAI ahead of an IPO, some of the people said.

Musk’s companies already have numerous relationships between themselves, including most recently Tesla’s $2 billion investment in xAI. At Tesla’s shareholder meeting last year, shareholders voted to invest in the company but the board didn’t approve the measure due to significant abstentions.

In 2024, SpaceX incurred about $2.4 million in expenses under commercial, licensing, and support agreements with Tesla, and Tesla incurred about $800,000 in expenses for Musk’s use of SpaceX’s jet.

tech

WSJ: Amazon considering $50 billion investment in OpenAI

What a difference half a day makes. Earlier today, The Information reported that Amazon was considering investing roughly $10 billion to $20 billion in OpenAI as part of a $60 billion fundraising round alongside Nvidia and Microsoft. Now The Wall Street Journal is reporting the e-commerce giant could invest up to $50 billion in the ChatGPT maker as part of a larger, $100 billion funding round. The Financial Times also earlier reported today a $100 billion funding round but with smaller amounts from Nvidia, Microsoft, and Amazon.

tech

Elon Musk’s SpaceX reportedly in talks to merge with xAI

Tesla CEO Elon Musk is reportedly exploring a merger between SpaceX and his artificial intelligence startup, xAI, a move that would bundle rockets, satellites, the social media site X, and AI under one company ahead of SpaceX’s long-anticipated IPO.

According to Reuters reporting, the deal would swap xAI shares for SpaceX stock, potentially valuing the combined operation north of $1 trillion.

Reuters reports:

Two entities have been set up in Nevada to facilitate the transaction, the person said.

Reuters could not determine the value of the deal, its ‌primary rationale, or its potential timing.

Corporate filings in Nevada show that those entities were set up on January 21. One of them, a limited liability company, lists SpaceX ​and Bret Johnsen, the companys chief financial officer, as managing members, while the other lists Johnsen as the companys only officer, the filings show.

The combined companies could also set the narrative groundwork for putting data centers in space — an idea that Musk and a number of other tech billionaires have been floating lately but that may not get off the ground.

In its earnings filings yesterday, Tesla disclosed that it recently made a $2 billion investment in xAI. Last year, Musk’s xAI bought Musk’s X in an all-stock deal.

Reuters reports:

Two entities have been set up in Nevada to facilitate the transaction, the person said.

Reuters could not determine the value of the deal, its ‌primary rationale, or its potential timing.

Corporate filings in Nevada show that those entities were set up on January 21. One of them, a limited liability company, lists SpaceX ​and Bret Johnsen, the companys chief financial officer, as managing members, while the other lists Johnsen as the companys only officer, the filings show.

The combined companies could also set the narrative groundwork for putting data centers in space — an idea that Musk and a number of other tech billionaires have been floating lately but that may not get off the ground.

In its earnings filings yesterday, Tesla disclosed that it recently made a $2 billion investment in xAI. Last year, Musk’s xAI bought Musk’s X in an all-stock deal.

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