Content giants demand fair AI deals from Google
People Inc. CEO Neil Vogel argues that Google uses publisher content for AI training without providing any financial return, disrupting the traditional traffic-based business model.
The relationship between major content publishers and Google is becoming increasingly strained as the tech giant pivots toward artificial intelligence. Neil Vogel, CEO of People Inc., stated that the company feels excluded from the economic benefits of its own content when it is used to power Google’s AI features. Vogel described the shift as a departure from a long-standing, unwritten agreement where publishers provided material for search results in exchange for user traffic.
According to Vogel, Google now utilizes publisher content to train its AI models in real-time and for long-term learning. However, unlike previous arrangements, there is no financial compensation or data sharing in return. This change has created a significant disparity for media companies that rely on search-driven visits to monetize their digital platforms.
Publishers seek paid licensing agreements
In response to this imbalance, People Inc. has pursued alternative revenue streams by signing content licensing deals with competitors such as Microsoft, Meta, and OpenAI. Vogel expressed a strong desire to establish a similar paid partnership with Google. The goal is to move away from a model based solely on traffic sessions to one where the use of intellectual property is directly compensated.
Despite the tension, Vogel stopped short of threatening to block Google from accessing their content entirely. He emphasized that Google remains a critical channel for their business. Instead of a hostile cutoff, Vogel indicated that the company is working toward a "reasonable economic solution." He noted that while negotiations have not yet yielded progress, he remains hopeful that a fair deal can be reached.
Revenue growth persists despite traffic loss
The pressure on search traffic has prompted many publishers to consider cost-cutting measures for 2026. However, People Inc. has managed to maintain financial stability. The company reported eleven consecutive quarters of digital revenue growth. In the second quarter, adjusted operating profits increased by 15% compared to the same period in the previous year, demonstrating resilience despite the changing digital landscape.
Diversification through major strategic investments
Beyond its media operations, People Inc. is deeply involved in broader tech and hospitality ventures. The company, which rebranded from IAC in 2025, submitted an $18 billion proposal in June to acquire the remaining shares of MGM Resorts International. It currently holds a 26.1% stake in the hotel and casino operator.
Additionally, People Inc. maintains a significant financial position in the car rental platform Turo. Holding approximately 31% of the company, People Inc. remains the largest external shareholder following its initial investment in 2019. These diverse holdings provide a buffer against the specific challenges facing the digital media sector, as reported by GN technics/ai (en-US).
