California has announced a groundbreaking deal to allocate approximately $250 million over five years to support local journalism and establish an AI research program, becoming the first U.S. state to do so. The initiative, set to launch in 2025 with an initial $100 million investment, aims to revitalize struggling news organizations and create hundreds of journalism jobs. Governor Gavin Newsom heralded the agreement as a vital step for democracy, emphasizing the role of journalism in society while leveraging tech industry resources without imposing new taxes on residents. The deal concludes a year-long conflict over a proposal that sought to require tech companies to pay media outlets for linking to their content, which faced significant backlash. Support for the agreement includes backing from major entities like the California News Publishers Association and tech giants such as Google and OpenAI. This collaboration signifies a commitment to enhance both local journalism and AI research in California.