The Atlantic: The Deal with OpenAI Pays Off, But Not in Traffic

Nicholas Thompson describes an agreement with OpenAI that brings payments and credits, without directing readers to the site. The Atlantic, which has become profitable with 1.6 million subscribers and revenue "well over" 100 million dollars according to its CEO, also relies on sponsored videos that it produces itself, distinct from the editorial content.

Little Traffic from Bots Despite Agreement with OpenAI

Nicholas Thompson explains that the agreement with OpenAI has not increased the number of visitors to The Atlantic's website, despite his initial expectation that AI would replace traditional search and generate traffic. He observes, like others in the industry, that bots direct few readers to publishers and that click-through rates are very low, which surprised him. However, he emphasizes that the partnership has brought other benefits and describes OpenAI as a reliable partner on these matters.

Renewal Conditional on "Fair Value" and Contractual Safeguards

To consider renewing the agreement, Nicholas Thompson stipulates a condition of fair value exchange between The Atlantic and OpenAI. Otherwise, he indicates that the magazine could block OpenAI's access to its site or pursue legal action. In the previous contract, OpenAI provided money and credits, initially deemed unhelpful but later becoming very valuable. The contract outlines the amount of text the model can summarize, the citation of authors, and the possibility of having the model write in an author's style, in order to limit the replacement of the magazine's work by AI. Thompson also wanted to participate in discussions about the role of journalism in OpenAI's models.

Profitability Restored, 1.6 Million Subscribers, and Support from a Wealthy Owner

The Atlantic is now profitable and has 1.6 million subscribers. Nicholas Thompson states that revenue far exceeds 100 million dollars, the most recently disclosed figure in 2023. He took over the magazine in 2021, a time when the company was facing financial difficulties and laying off staff. The magazine is owned by Laurene Powell Jobs, whose wealth is estimated at 15 billion dollars. Jeffrey Goldberg serves as editor-in-chief, and the publication is frequently recognized for the quality of its articles under his leadership.

A CEO-Producer of Sponsored Videos, Separate from the Editorial Service

Nicholas Thompson produces sponsored videos that he publishes, notably on LinkedIn, where he has 1.6 million followers. These contents do not fall under the editorial service and do not involve Jeffrey Goldberg; they are clearly identified as external to the newsroom. Thompson claims that these formats generate significant revenue, appreciated by the editorial team, and that the money is used to hire journalists. He insists on the strict separation between his activities and those of the editorial team, highlighting his background as a business-sensitive editor. He describes a situation without tension, attributing it to the quality of the content, its revenue, and the independence of the two teams. He cites, for example, a recent interview with Richard Socher, CEO of Recursive, which the editorial team might be unaware of while independently preparing an article on the same subject.