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In the summer of 2023, amidst ongoing debates on artificial intelligence’s cultural and economic impact, the American Journalism Project (AJP) announced a partnership with OpenAI. This collaboration aimed to provide funding for the innovative use of AI in local newsrooms. Although OpenAI’s donation of US$10 million was smaller than recent contributions from Meta and Google, it marked a significant moment where a leading technology company sought to support the news industry through philanthropy.

Sarabeth Berman, CEO of the American Journalism Project, emphasised the opportunity to involve local news organisations in shaping the implications of generative AI. She highlighted the dual role of venture philanthropists in both fostering innovation and mitigating the financial decline of local news. AJP is part of a broader movement of venture philanthropy programmes, including the Google News Initiative and Meta Journalism Project, which are increasingly influential in journalism. These organisations position themselves as key players in revitalising local journalism through entrepreneurial ideologies and market-oriented solutions.

Venture philanthropists frame the crisis in local news as an opportunity for innovation, portraying themselves as essential in matching financial resources with deserving organisations. They argue that their investments can achieve sustainability and growth in local news where market forces have failed. John Thornton, a co-founder of AJP, compared venture philanthropy to venture capital, suggesting that these funds are necessary to support mission-driven news organisations.

This approach links financial growth directly to the success of local journalism, positioning revenue generation as a critical measure of success. AJP’s impact report claims that their grantees generally grow significantly in revenue, suggesting that venture philanthropy can address market failures in local journalism. However, critics note that much of this funding tends to benefit already affluent communities, raising questions about the equitable distribution of resources.

Venture philanthropists also play a crucial role in disseminating practical knowledge and technical capabilities in journalism. They offer training, best practice guides, and case studies to help news organisations integrate new technologies and business strategies. For example, the Google News Initiative supports projects like the Post and Courier’s use of Google Analytics to develop paid newsletters, demonstrating how local newsrooms can adopt innovative practices to drive revenue growth.

The influence of venture philanthropy also extends beyond financial support, to shaping the discourse around journalism’s future. These organisations produce significant discussion about journalism, promoting their own role as arbiters of change and innovation. They position themselves as knowledgeable experts who understand how to best use available philanthropic capital to achieve sustainability in journalism.

The discourse of venture philanthropy often merges financial and public missions, suggesting that market-oriented strategies can serve the public interest. For instance, Elizabeth Green, co-founder of AJP, stressed the need for expert teams to raise diverse revenue and develop strategic leadership within local news organisations. This framing implies that financial sustainability and public mission are intertwined and that successful organisations must navigate market realities to fulfil their public roles.

Venture philanthropy organisations also respond to journalism critiques, such as the need for diversity and equity, by framing these issues as mission and business goals. They highlight successful examples of integrating diversity into their product and audience development strategies, suggesting that these efforts can attract philanthropic funding.

According to this study, venture philanthropy’s blending of financial concerns with public mission creates a powerful discourse that shapes how resources are directed in journalism. While some critics argue for increased public and government support for local journalism, venture philanthropists present a compelling alternative by leveraging market-driven innovation and philanthropic capital to address the ongoing crises that the industry has been facing for more than a decade.

Creech, B. (2024). Venture Philanthropy, Local News, and the Murky Promise of Innovation. Media and Communication, 12. https://doi.org/10.17645/mac.7496