Sources: Anthropic and AP struck a licensing deal just before the midterms, marking the first time Anthropic paid a digital news publisher to license content (Mark Stenberg/Adweek)

Just before the midterm elections, Anthropic and the Associated Press (AP) reached a licensing agreement, marking the first time Anthropic paid a digital news publisher to license content, according to two sources familiar with the matter. The financial details of the arrangement have not been disclosed by either party. This move represents a significant shift in Anthropic's strategy, as the company had not previously engaged in any content licensing deals with digital publishers.

Anthropic's primary competitor, OpenAI's ChatGPT, has negotiated multiple content licensing deals with major publishers such as Axel Springer, News Corp., and The Atlantic. The move by Anthropic to enter into a licensing agreement comes as it prepares to go public in a matter of weeks. The likely reason for this change in strategy is that Anthropic recognized the importance of up-to-date data for its AI model, Claude, which requires credible, timely reporting to provide accurate information during critical moments such as an election cycle.

Without access to premium publishers' content, Anthropic's model was limited to low-credibility sources, making it nearly useless for real-time information during such events. Publishers had been blocking Anthropic's crawlers to produce this outcome, effectively implementing a digital embargo. The Associated Press, with its significant revenue generated through licensing and wire deals, was an ideal partner for Anthropic to test out licensing opportunities.

The deal, while limited, demonstrates the value of credible, real-time information to answer engines. However, it is uncertain whether this will be the beginning of a broader licensing strategy for Anthropic.