Reach CEO Piers North Uses Google AI Deal as Blueprint, Sends OpenAI Cease-and-Desist

Reach's Google Deal and the OpenAI Standoff: What's at Stake

Reach PLC, the UK publisher behind the Daily Express, Daily Star, and OK! Magazine, has signed a two-year paid content licensing deal with Google. The agreement gives Google access to Reach's UK and Ireland news content for its news AI pilot program, which includes experimental AI features and new ways of delivering news. In return, Reach receives payment and visibility into how its content is being used in AI systems. The deal is time-limited, with a renewal conversation expected down the line.

At the same time, Reach has escalated its dispute with OpenAI by sending a cease-and-desist letter. The publisher claims it has evidence from access logs showing millions of scrapes of its content by OpenAI's bots over the last six months. Reach CEO Piers North said the company has put up "do not walk on the grass" signs but that scrapers are becoming more sophisticated, making it hard to distinguish between bot and human traffic. OpenAI has not publicly responded to the letter.

North is positioning the Google deal as a template for future partnerships with large language model (LLM) companies. He argues that publishers' content has inherent value to AI firms and that a fair value exchange must be established. Reach is already in discussions with Amazon, Meta, and Microsoft, but says OpenAI is not playing ball. The publisher's strategy is to set the rules of engagement: AI companies must get permission and pay for content, or face legal escalation.

Why Reach Is Playing Both Sides of the AI Content War

Reach's Dual-Track Strategy: Deal with Google, Pressure OpenAI

Reach is pursuing a two-pronged approach: partnering with Google to establish a licensing framework, while using legal pressure on OpenAI to bring it to the table. The Google deal provides a proof of concept that Reach hopes will become an industry standard. By agreeing to a time-limited deal, Reach gains data on how its content performs in AI systems, which it can use as leverage in future negotiations. The cease-and-desist letter to OpenAI is a signal that Reach is willing to escalate if AI firms refuse to engage.

The Economics of AI Content Licensing

Reach's move reflects a broader shift in the media industry: publishers are seeking compensation for content that AI companies scrape to train and power their models. The deal with Google gives Reach a seat at the table, allowing it to learn how AI features affect audience engagement. However, the financial terms are not disclosed, and it is unclear whether the deal compensates for the erosion of referral traffic from traditional search. North acknowledges that the old search-to-traffic paradigm has changed and that a new market framework is needed.

Competitive Dynamics: Google, OpenAI, and Other AI Firms

Google's news AI pilot program has already signed up more than 200 publications globally, giving it a growing library of licensed content. OpenAI, by contrast, faces legal pressure from publishers like Reach and may be forced to negotiate deals. The outcome of Reach's dispute with OpenAI could influence how other AI firms approach content licensing. If Reach succeeds in getting OpenAI to pay, it could set a precedent for other publishers. If OpenAI refuses, it may face lawsuits and reputational damage.

What's Next for Reach and the Industry

Reach plans to use the Google deal as a model for other LLM partnerships. The company is in discussions with Amazon, Meta, and Microsoft, and North says he expects to announce more deals. The key question is whether AI companies will agree to a standardized framework or continue to resist. For context, the UK government is considering legislation on AI and copyright, which could force AI firms to license content. Reach's actions may be a preemptive move to shape that regulatory environment.

What This Means for Publishers, AI Firms, and Investors

The most important insight: Reach's Google deal and OpenAI cease-and-desist show that publishers are moving from passive resistance to active deal-making and legal enforcement in the AI content war.

For publishers: Reach's two-year deal with Google provides a template for structuring AI licensing agreements. Key elements include time-limited terms, paid access, and visibility into content usage. Publishers should consider similar deals to establish a revenue stream and gain leverage for future negotiations. However, they must also weigh the risk of undermining their own referral traffic if AI features replace search clicks.

For AI companies: The cease-and-desist letter to OpenAI signals that publishers are willing to take legal action. AI firms that rely on scraped content should assess their exposure and consider proactive licensing deals. Google's pilot program, with over 200 publications, demonstrates that deals are possible. OpenAI's refusal to engage could lead to lawsuits and regulatory scrutiny.

For investors: Reach's ability to monetize its content through AI deals could provide a new revenue stream, but the financial impact is uncertain. Watch for announcements of additional deals with Amazon, Meta, and Microsoft, as well as any response from OpenAI. The outcome of the OpenAI dispute could set a precedent for the entire industry.

Metrics to watch: The number of publications joining Google's AI pilot, the financial terms of Reach's deal (if disclosed), and any regulatory developments in the UK or EU regarding AI and copyright.