The OpenAI and Dotdash Meredith licensing deal is an agreement where Dotdash Meredith, a large digital publisher in the U.S., will license its content to OpenAI. This content will be used to train OpenAI's algorithms. Additionally, the two companies will collaborate on creating new AI products and features, and provide real-time, authoritative information to ChatGPT users.

To use OpenAI's large-language models to improve the ad-targeting tool D/Cipher, Dotdash Meredith will integrate these AI models into D/Cipher. This integration aims to enhance the tool's ability to target consumers based on the context of content they are consuming, without relying on personal identifiers like tracking cookies. The result is expected to be more precise targeting and improved ad performance in a world moving away from cookies.

D/Cipher is an AI-driven ad-targeting tool developed by Dotdash Meredith. It allows advertisers to target consumers based on the context of the content being consumed rather than using personal identifiers like tracking cookies. With the OpenAI deal, D/Cipher will be 'supercharged' with AI to offer more precise targeting and improved ad performance.

The industry coalition for copyright protections from AI firms, pushed by Dotdash Meredith's parent firm IAC, ultimately collapsed due to conflicting business incentives within the media industry. This indicates a division among publishers on how to handle negotiations with AI firms, with some opting for partnerships and others for legal action.