Tech
TechCrunch Disrupt Berlin 2019 - Day 2
Cloudflare cofounder and CEO Matthew Prince (Noam Galai/Getty Images)
You down with PPC

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.

More Tech

See all Tech
tech

Intel romps amid reported attempt to poach a 21-year Taiwan Semiconductor veteran

A report in the Taiwanese press that Intel is attempting to recruit a recently retired top Taiwan Semiconductor executive, Wei-Jen Lo, to lead R&D at Intel’s troubled foundry division may account for the bump in Intel shares Tuesday, one analyst told us.

A synopsis of the report from technology analysis and news outlet Trendforce notes:

If confirmed, the move could have significant implications for TSMC and the broader Taiwanese semiconductor industry, especially as Intel aggressively expands its foundry business with support from Washington and backing from tech giants like NVIDIA and SoftBank, the report adds.

But some skepticism about Lo, 75 years old, returning to Intel, where he worked before joining TSMC in 2004, is also warranted, Trendforce notes:

“Industry insiders cited by the report say it is unlikely he would join Intel again, given TSMC’s non-compete rules, Intel’s status as a direct competitor, Lo’s advanced age, health considerations, and his long-standing loyalty to TSMC founder Morris Chang. On the other hand, some industry observers warn that Lo, a U.S. citizen, would be difficult for TSMC to restrict, even with non-compete clauses.”

Intel shares have doubled over the last three months, since the US government took a 10% stake in the company in August. Intel is the best performing stock in the S&P 500 over that period.

If confirmed, the move could have significant implications for TSMC and the broader Taiwanese semiconductor industry, especially as Intel aggressively expands its foundry business with support from Washington and backing from tech giants like NVIDIA and SoftBank, the report adds.

But some skepticism about Lo, 75 years old, returning to Intel, where he worked before joining TSMC in 2004, is also warranted, Trendforce notes:

“Industry insiders cited by the report say it is unlikely he would join Intel again, given TSMC’s non-compete rules, Intel’s status as a direct competitor, Lo’s advanced age, health considerations, and his long-standing loyalty to TSMC founder Morris Chang. On the other hand, some industry observers warn that Lo, a U.S. citizen, would be difficult for TSMC to restrict, even with non-compete clauses.”

Intel shares have doubled over the last three months, since the US government took a 10% stake in the company in August. Intel is the best performing stock in the S&P 500 over that period.

Sunny blue sky with large storm clouds in spring.

This earnings season, all eyes are on cloud revenue growth

AI computing demand is generating huge revenue streams for hyperscalers, but the market is closely watching the pace of growth, which is slowing.

tech

Nokia surges as Nvidia invests $1 billion in company, a 2.9% stake

Nvidia is taking a 2.9% stake in Nokia, as the Finnish mobile networking company has successfully pivoted to AI and data center technology.

In a press release announcing the deal, Nokia said:

“Nokia intends to accelerate development of Nokia’s 5G & 6G RAN software to run on NVIDIA’s architecture and will make investments to drive Nokia’s strategic goal of increasing its presence in the AI & Cloud market with data center aligned networking solutions within its Network Infrastructure business. Nokia and NVIDIA have agreed to collaborate on AI networking solutions and explore opportunities to incorporate Nokia’s data center switching and optical technologies in NVIDIA’s future AI infrastructure architecture.”

Nokia’s stock shot up over 20% on news of the deal.

“Nokia intends to accelerate development of Nokia’s 5G & 6G RAN software to run on NVIDIA’s architecture and will make investments to drive Nokia’s strategic goal of increasing its presence in the AI & Cloud market with data center aligned networking solutions within its Network Infrastructure business. Nokia and NVIDIA have agreed to collaborate on AI networking solutions and explore opportunities to incorporate Nokia’s data center switching and optical technologies in NVIDIA’s future AI infrastructure architecture.”

Nokia’s stock shot up over 20% on news of the deal.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.