Silicon Valley’s latest drama is unfolding, and it’s not about the next revolutionary app or startup - it’s about journalism’s survival.

In a twist that screams “tech capitalism at its finest,” Google and California struck a deal last year to rescue local news, only to potentially pull the rug out from under struggling journalists. Governor Gavin Newsom just proposed slashing the state’s initial $30 million commitment to a journalism fund down to a measly $10 million.

The Backstory

Last August, Google and California agreed to create a fund supporting local news outlets, effectively stopping two legislative proposals that would have forced tech giants to pay for content. The plan seemed straightforward: each party would contribute millions over five years to help stem the bleeding of local journalism.

The Plot Thickens

But here’s the kicker - before a single dollar has been distributed, the funding is already shrinking. Newsom’s budget revision, aimed at closing a $12 billion shortfall, could jeopardize the entire initiative. Steven Waldman from Rebuild Local News calls it “extremely disappointing,” highlighting how “pink slime” and misinformation are flooding the news vacuum.

The Tech Twist

With no signed agreements and UC Berkeley backing out of administering the fund, Google hasn’t even made its first $15 million payment. The company’s lobbying efforts last year - a whopping $11 million - now seem like a strategic smokescreen to avoid more stringent legislation.

As California’s local news landscape continues to crumble, this deal looks less like a lifeline and more like a performative gesture from tech titans who talk about saving journalism while simultaneously undermining it.