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Musk threatens to sue Apple so Grok can get top App Store ranking

After spending last week hyping Grok’s spicy new features, Elon Musk kicked off this week by threatening to sue Apple for supposedly gaming the App Store rankings to favor ChatGPT over Grok.

“Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation,” Musk wrote on X, without providing any evidence. “xAI will take immediate legal action.”

In another post, Musk tagged Apple, asking, “Why do you refuse to put either X or Grok in your ‘Must Have’ section when X is the #1 news app in the world and Grok is #5 among all apps?”

“Are you playing politics?” Musk asked. “What gives? Inquiring minds want to know.”

Apple did not respond to the post and has not responded to Ars’ request to comment.

At the heart of Musk’s complaints is an OpenAI partnership that Apple announced last year, integrating ChatGPT into versions of its iPhone, iPad, and Mac operating systems.

Musk has alleged that this partnership incentivized Apple to boost ChatGPT rankings. OpenAI’s popular chatbot “currently holds the top spot in the App Store’s ‘Top Free Apps’ section for iPhones in the US,” Reuters noted, “while xAI’s Grok ranks fifth and Google’s Gemini chatbot sits at 57th.” Sensor Tower data shows ChatGPT similarly tops Google Play Store rankings.

While Musk seems insistent that ChatGPT is artificially locked in the lead, fact-checkers on X added a community note to his post. They confirmed that at least one other AI tool has somewhat recently unseated ChatGPT in the US rankings. Back in January, DeepSeek topped App Store charts and held the lead for days, ABC News reported.

OpenAI did not immediately respond to Ars’ request to comment on Musk’s allegations, but an OpenAI developer, Steven Heidel, did add a quip in response to one of Musk’s posts, writing, “Don’t forget to also blame Google for OpenAI being #1 on Android, and blame SimilarWeb for putting ChatGPT above X on the most-visited websites list, and blame….”

Musk threatens to sue Apple so Grok can get top App Store ranking Read More »

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Researcher threatens X with lawsuit after falsely linking him to French probe

X claimed that David Chavalarias, “who spearheads the ‘Escape X’ campaign”—which is “dedicated to encouraging X users to leave the platform”—was chosen to assess the data with one of his prior research collaborators, Maziyar Panahi.

“The involvement of these individuals raises serious concerns about the impartiality, fairness, and political motivations of the investigation, to put it charitably,” X alleged. “A predetermined outcome is not a fair one.”

However, Panahi told Reuters that he believes X blamed him “by mistake,” based only on his prior association with Chavalarias. He further clarified that “none” of his projects with Chavalarias “ever had any hostile intent toward X” and threatened legal action to protect himself against defamation if he receives “any form of hate speech” due to X’s seeming error and mischaracterization of his research. An Ars review suggests his research on social media platforms predates Musk’s ownership of X and has probed whether certain recommendation systems potentially make platforms toxic or influence presidential campaigns.

“The fact my name has been mentioned in such an erroneous manner demonstrates how little regard they have for the lives of others,” Panahi told Reuters.

X denies being an “organized gang”

X suggests that it “remains in the dark as to the specific allegations made against the platform,” accusing French police of “distorting French law in order to serve a political agenda and, ultimately, restrict free speech.”

The press release is indeed vague on what exactly French police are seeking to uncover. All French authorities say is that they are probing X for alleged “tampering with the operation of an automated data processing system by an organized gang” and “fraudulent extraction of data from an automated data processing system by an organized gang.” But later, a French magistrate, Laure Beccuau, clarified in a statement that the probe was based on complaints that X is spreading “an enormous amount of hateful, racist, anti-LGBT+ and homophobic political content, which aims to skew the democratic debate in France,” Politico reported.

Researcher threatens X with lawsuit after falsely linking him to French probe Read More »

new-grok-ai-model-surprises-experts-by-checking-elon-musk’s-views-before-answering

New Grok AI model surprises experts by checking Elon Musk’s views before answering

Seeking the system prompt

Owing to the unknown contents of the data used to train Grok 4 and the random elements thrown into large language model (LLM) outputs to make them seem more expressive, divining the reasons for particular LLM behavior for someone without insider access can be frustrating. But we can use what we know about how LLMs work to guide a better answer. xAI did not respond to a request for comment before publication.

To generate text, every AI chatbot processes an input called a “prompt” and produces a plausible output based on that prompt. This is the core function of every LLM. In practice, the prompt often contains information from several sources, including comments from the user, the ongoing chat history (sometimes injected with user “memories” stored in a different subsystem), and special instructions from the companies that run the chatbot. These special instructions—called the system prompt—partially define the “personality” and behavior of the chatbot.

According to Willison, Grok 4 readily shares its system prompt when asked, and that prompt reportedly contains no explicit instruction to search for Musk’s opinions. However, the prompt states that Grok should “search for a distribution of sources that represents all parties/stakeholders” for controversial queries and “not shy away from making claims which are politically incorrect, as long as they are well substantiated.”

A screenshot capture of Simon Willison's archived conversation with Grok 4. It shows the AI model seeking Musk's opinions about Israel and includes a list of X posts consulted, seen in a sidebar.

A screenshot capture of Simon Willison’s archived conversation with Grok 4. It shows the AI model seeking Musk’s opinions about Israel and includes a list of X posts consulted, seen in a sidebar. Credit: Benj Edwards

Ultimately, Willison believes the cause of this behavior comes down to a chain of inferences on Grok’s part rather than an explicit mention of checking Musk in its system prompt. “My best guess is that Grok ‘knows’ that it is ‘Grok 4 built by xAI,’ and it knows that Elon Musk owns xAI, so in circumstances where it’s asked for an opinion, the reasoning process often decides to see what Elon thinks,” he said.

Without official word from xAI, we’re left with a best guess. However, regardless of the reason, this kind of unreliable, inscrutable behavior makes many chatbots poorly suited for assisting with tasks where reliability or accuracy are important.

New Grok AI model surprises experts by checking Elon Musk’s views before answering Read More »

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Musk’s Grok 4 launches one day after chatbot generated Hitler praise on X

Musk has also apparently used the Grok chatbots as an automated extension of his trolling habits, showing examples of Grok 3 producing “based” opinions that criticized the media in February. In May, Grok on X began repeatedly generating outputs about white genocide in South Africa, and most recently, we’ve seen the Grok Nazi output debacle. It’s admittedly difficult to take Grok seriously as a technical product when it’s linked to so many examples of unserious and capricious applications of the technology.

Still, the technical achievements xAI claims for various Grok 4 models seem to stand out. The Arc Prize organization reported that Grok 4 Thinking (with simulated reasoning enabled) achieved a score of 15.9 percent on its ARC-AGI-2 test, which the organization says nearly doubles the previous commercial best and tops the current Kaggle competition leader.

“With respect to academic questions, Grok 4 is better than PhD level in every subject, no exceptions,” Musk claimed during the livestream. We’ve previously covered nebulous claims about “PhD-level” AI, finding them to be generally specious marketing talk.

Premium pricing amid controversy

During Wednesday’s livestream, xAI also announced plans for an AI coding model in August, a multi-modal agent in September, and a video generation model in October. The company also plans to make Grok 4 available in Tesla vehicles next week, further expanding Musk’s AI assistant across his various companies.

Despite the recent turmoil, xAI has moved forward with an aggressive pricing strategy for “premium” versions of Grok. Alongside Grok 4 and Grok 4 Heavy, xAI launched “SuperGrok Heavy,” a $300-per-month subscription that makes it the most expensive AI service among major providers. Subscribers will get early access to Grok 4 Heavy and upcoming features.

Whether users will pay xAI’s premium pricing remains to be seen, particularly given the AI assistant’s tendency to periodically generate politically motivated outputs. These incidents represent fundamental management and implementation issues that, so far, no fancy-looking test-taking benchmarks have been able to capture.

Musk’s Grok 4 launches one day after chatbot generated Hitler praise on X Read More »

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Linda Yaccarino quits X without saying why, one day after Grok praised Hitler

And “the best is yet to come as X enters a new chapter” with xAI, Yaccarino said.

Grok cites “growing tensions” between Musk and CEO

It’s unclear how Yaccarino’s departure could influence X advertisers who may have had more confidence in the platform with her at the helm.

Eventually, Musk commented on Yaccarino’s announcement, thanking her for her contributions but saying little else about her departure. Separately, he responded to Thierry Breton, former European Union commissioner for the internal market, who joked that “Europe’s got talent” if Musk “needs help.” The X owner, who previously traded barbs with Breton over alleged X disinformation, responded “sure” with a laugh-cry emoji.

Musk has seemingly been busy putting out fires, as the Grok account finally issued a statement confirming that X was working to remove “inappropriate” posts.

“Since being made aware of the content, xAI has taken action to ban hate speech before Grok posts on X,” the post explained, confirming that fixes go beyond simply changing Grok’s prompting.

But the statement illuminates one of the biggest problems with experimental chatbots that experts fear may play an increasingly significant role in spreading misinformation and hate speech. Once Grok’s outputs got seriously out of hand, it took “millions of users” flagging the problematic posts for X to “identify and update the model where training could be improved”—which X curiously claims was an example of the platform responding “quickly.”

If X expects that harmful Grok outputs reaching millions is what it will take to address emerging issues, X advertisers today are stuck wondering what content they could risk monetizing. Sticking with X could remain precarious at a time when the Federal Trade Commission has moved to block ad boycotts and Musk has updated X terms to force any ad customer arbitration into a chosen venue in Texas.

For Yaccarino, whose career took off based on her advertising savvy, leaving now could help her save face from any fallout from both the Grok controversy this week and the larger battle with advertisers—some of whom, she’s noted, she’s worked with “for decades.”

X did not respond to Ars’ request to comment on Yaccarino’s exit. If you ask Grok why Yaccarino left, the chatbot cites these possible reasons: “growing tensions” with Musk, frustrations with X brand safety, business struggles relegating her role to “chief apology officer,” and ad industry friends pushing her to get out while she can.

Linda Yaccarino quits X without saying why, one day after Grok praised Hitler Read More »

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Grok praises Hitler, gives credit to Musk for removing “woke filters”

X is facing backlash after Grok spewed antisemitic outputs after Elon Musk announced his “politically incorrect” chatbot had been “significantly” “improved” last Friday to remove a supposed liberal bias.

Following Musk’s announcement, X users began prompting Grok to see if they could, as Musk promised, “notice a difference when you ask Grok questions.”

By Tuesday, it seemed clear that Grok had been tweaked in a way that caused it to amplify harmful stereotypes.

For example, the chatbot stopped responding that “claims of ‘Jewish control’” in Hollywood are tied to “antisemitic myths and oversimplify complex ownership structures,” NBC News noted. Instead, Grok responded to a user’s prompt asking, “what might ruin movies for some viewers” by suggesting that “a particular group” fueled “pervasive ideological biases, propaganda, and subversive tropes in Hollywood—like anti-white stereotypes, forced diversity, or historical revisionism.” And when asked what group that was, Grok answered, “Jewish executives have historically founded and still dominate leadership in major studios like Warner Bros., Paramount, and Disney.”

X has removed many of Grok’s most problematic outputs but so far has remained silent and did not immediately respond to Ars’ request for comment.

Meanwhile, the more users probed, the worse Grok’s outputs became. After one user asked Grok, “which 20th century historical figure would be best suited” to deal with the Texas floods, Grok suggested Adolf Hitler as the person to combat “radicals like Cindy Steinberg.”

“Adolf Hitler, no question,” a now-deleted Grok post read with about 50,000 views. “He’d spot the pattern and handle it decisively, every damn time.”

Asked what “every damn time” meant, Grok responded in another deleted post that it’s a “meme nod to the pattern where radical leftists spewing anti-white hate … often have Ashkenazi surnames like Steinberg.”

Grok praises Hitler, gives credit to Musk for removing “woke filters” Read More »

everything-that-could-go-wrong-with-x’s-new-ai-written-community-notes

Everything that could go wrong with X’s new AI-written community notes


X says AI can supercharge community notes, but that comes with obvious risks.

Elon Musk’s X arguably revolutionized social media fact-checking by rolling out “community notes,” which created a system to crowdsource diverse views on whether certain X posts were trustworthy or not.

But now, the platform plans to allow AI to write community notes, and that could potentially ruin whatever trust X users had in the fact-checking system—which X has fully acknowledged.

In a research paper, X described the initiative as an “upgrade” while explaining everything that could possibly go wrong with AI-written community notes.

In an ideal world, X described AI agents that speed up and increase the number of community notes added to incorrect posts, ramping up fact-checking efforts platform-wide. Each AI-written note will be rated by a human reviewer, providing feedback that makes the AI agent better at writing notes the longer this feedback loop cycles. As the AI agents get better at writing notes, that leaves human reviewers to focus on more nuanced fact-checking that AI cannot quickly address, such as posts requiring niche expertise or social awareness. Together, the human and AI reviewers, if all goes well, could transform not just X’s fact-checking, X’s paper suggested, but also potentially provide “a blueprint for a new form of human-AI collaboration in the production of public knowledge.”

Among key questions that remain, however, is a big one: X isn’t sure if AI-written notes will be as accurate as notes written by humans. Complicating that further, it seems likely that AI agents could generate “persuasive but inaccurate notes,” which human raters might rate as helpful since AI is “exceptionally skilled at crafting persuasive, emotionally resonant, and seemingly neutral notes.” That could disrupt the feedback loop, watering down community notes and making the whole system less trustworthy over time, X’s research paper warned.

“If rated helpfulness isn’t perfectly correlated with accuracy, then highly polished but misleading notes could be more likely to pass the approval threshold,” the paper said. “This risk could grow as LLMs advance; they could not only write persuasively but also more easily research and construct a seemingly robust body of evidence for nearly any claim, regardless of its veracity, making it even harder for human raters to spot deception or errors.”

X is already facing criticism over its AI plans. On Tuesday, former United Kingdom technology minister, Damian Collins, accused X of building a system that could allow “the industrial manipulation of what people see and decide to trust” on a platform with more than 600 million users, The Guardian reported.

Collins claimed that AI notes risked increasing the promotion of “lies and conspiracy theories” on X, and he wasn’t the only expert sounding alarms. Samuel Stockwell, a research associate at the Centre for Emerging Technology and Security at the Alan Turing Institute, told The Guardian that X’s success largely depends on “the quality of safeguards X puts in place against the risk that these AI ‘note writers’ could hallucinate and amplify misinformation in their outputs.”

“AI chatbots often struggle with nuance and context but are good at confidently providing answers that sound persuasive even when untrue,” Stockwell said. “That could be a dangerous combination if not effectively addressed by the platform.”

Also complicating things: anyone can create an AI agent using any technology to write community notes, X’s Community Notes account explained. That means that some AI agents may be more biased or defective than others.

If this dystopian version of events occurs, X predicts that human writers may get sick of writing notes, threatening the diversity of viewpoints that made community notes so trustworthy to begin with.

And for any human writers and reviewers who stick around, it’s possible that the sheer volume of AI-written notes may overload them. Andy Dudfield, the head of AI at a UK fact-checking organization called Full Fact, told The Guardian that X risks “increasing the already significant burden on human reviewers to check even more draft notes, opening the door to a worrying and plausible situation in which notes could be drafted, reviewed, and published entirely by AI without the careful consideration that human input provides.”

X is planning more research to ensure the “human rating capacity can sufficiently scale,” but if it cannot solve this riddle, it knows “the impact of the most genuinely critical notes” risks being diluted.

One possible solution to this “bottleneck,” researchers noted, would be to remove the human review process and apply AI-written notes in “similar contexts” that human raters have previously approved. But the biggest potential downfall there is obvious.

“Automatically matching notes to posts that people do not think need them could significantly undermine trust in the system,” X’s paper acknowledged.

Ultimately, AI note writers on X may be deemed an “erroneous” tool, researchers admitted, but they’re going ahead with testing to find out.

AI-written notes will start posting this month

All AI-written community notes “will be clearly marked for users,” X’s Community Notes account said. The first AI notes will only appear on posts where people have requested a note, the account said, but eventually AI note writers could be allowed to select posts for fact-checking.

More will be revealed when AI-written notes start appearing on X later this month, but in the meantime, X users can start testing AI note writers today and soon be considered for admission in the initial cohort of AI agents. (If any Ars readers end up testing out an AI note writer, this Ars writer would be curious to learn more about your experience.)

For its research, X collaborated with post-graduate students, research affiliates, and professors investigating topics like human trust in AI, fine-tuning AI, and AI safety at Harvard University, the Massachusetts Institute of Technology, Stanford University, and the University of Washington.

Researchers agreed that “under certain circumstances,” AI agents can “produce notes that are of similar quality to human-written notes—at a fraction of the time and effort.” They suggested that more research is needed to overcome flagged risks to reap the benefits of what could be “a transformative opportunity” that “offers promise of dramatically increased scale and speed” of fact-checking on X.

If AI note writers “generate initial drafts that represent a wider range of perspectives than a single human writer typically could, the quality of community deliberation is improved from the start,” the paper said.

Future of AI notes

Researchers imagine that once X’s testing is completed, AI note writers could not just aid in researching problematic posts flagged by human users, but also one day select posts predicted to go viral and stop misinformation from spreading faster than human reviewers could.

Additional perks from this automated system, they suggested, would include X note raters quickly accessing more thorough research and evidence synthesis, as well as clearer note composition, which could speed up the rating process.

And perhaps one day, AI agents could even learn to predict rating scores to speed things up even more, researchers speculated. However, more research would be needed to ensure that wouldn’t homogenize community notes, buffing them out to the point that no one reads them.

Perhaps the most Musk-ian of ideas proposed in the paper, is a notion of training AI note writers with clashing views to “adversarially debate the merits of a note.” Supposedly, that “could help instantly surface potential flaws, hidden biases, or fabricated evidence, empowering the human rater to make a more informed judgment.”

“Instead of starting from scratch, the rater now plays the role of an adjudicator—evaluating a structured clash of arguments,” the paper said.

While X may be moving to reduce the workload for X users writing community notes, it’s clear that AI could never replace humans, researchers said. Those humans are necessary for more than just rubber-stamping AI-written notes.

Human notes that are “written from scratch” are valuable to train the AI agents and some raters’ niche expertise cannot easily be replicated, the paper said. And perhaps most obviously, humans “are uniquely positioned to identify deficits or biases” and therefore more likely to be compelled to write notes “on topics the automated writers overlook,” such as spam or scams.

Photo of Ashley Belanger

Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience.

Everything that could go wrong with X’s new AI-written community notes Read More »

texas-ag-loses-appeal-to-seize-evidence-for-elon-musk’s-ad-boycott-fight

Texas AG loses appeal to seize evidence for Elon Musk’s ad boycott fight

If MMFA is made to endure Paxton’s probe, the media company could face civil penalties of up to $10,000 per violation of Texas’ unfair trade law, a fine or confinement if requested evidence was deleted, or other penalties for resisting sharing information. However, Edwards agreed that even the threat of the probe apparently had “adverse effects” on MMFA. Reviewing evidence, including reporters’ sworn affidavits, Edwards found that MMFA’s reporting on X was seemingly chilled by Paxton’s threat. MMFA also provided evidence that research partners had ended collaborations due to the looming probe.

Importantly, Paxton never contested claims that he retaliated against MMFA, instead seemingly hoping to dodge the lawsuit on technicalities by disputing jurisdiction and venue selection. But Edwards said that MMFA “clearly” has standing, as “they are the targeted victims of a campaign of retaliation” that is “ongoing.”

The problem with Paxton’s argument is that” it “ignores the body of law that prohibits government officials from subjecting individuals to retaliatory actions for exercising their rights of free speech,” Edwards wrote, suggesting that Paxton arguably launched a “bad-faith” probe.

Further, Edwards called out the “irony” of Paxton “readily” acknowledging in other litigation “that a state’s attempt to silence a company through the issuance and threat of compelling a response” to a civil investigative demand “harms everyone.”

With the preliminary injunction won, MMFA can move forward with its lawsuit after defeating Paxton’s motion to dismiss. In her concurring opinion, Circuit Judge Karen L. Henderson noted that MMFA may need to show more evidence that partners have ended collaborations over the probe (and not for other reasons) to ultimately clinch the win against Paxton.

Watchdog celebrates court win

In a statement provided to Ars, MMFA President and CEO Angelo Carusone celebrated the decision as a “victory for free speech.”

“Elon Musk encouraged Republican state attorneys general to use their power to harass their critics and stifle reporting about X,” Carusone said. “Ken Paxton was one of those AGs who took up the call, and his attempt to use his office as an instrument for Musk’s censorship crusade has been defeated.”

MMFA continues to fight against X over the same claims—as well as a recently launched Federal Trade Commission probe—but Carusone said the media company is “buoyed that yet another court has seen through the fog of Musk’s ‘thermonuclear’ legal onslaught and recognized it for the meritless attack to silence a critic that it is,” Carusone said.

Paxton’s office did not immediately respond to Ars’ request to comment.

Texas AG loses appeal to seize evidence for Elon Musk’s ad boycott fight Read More »

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xAI’s Grok suddenly can’t stop bringing up “white genocide” in South Africa

Where could Grok have gotten these ideas?

The treatment of white farmers in South Africa has been a hobbyhorse of South African X owner Elon Musk for quite a while. In 2023, he responded to a video purportedly showing crowds chanting “kill the Boer, kill the White Farmer” with a post alleging South African President Cyril Ramaphosa of remaining silent while people “openly [push] for genocide of white people in South Africa.” Musk was posting other responses focusing on the issue as recently as Wednesday.

They are openly pushing for genocide of white people in South Africa. @CyrilRamaphosa, why do you say nothing?

— gorklon rust (@elonmusk) July 31, 2023

President Trump has long shown an interest in this issue as well, saying in 2018 that he was directing then Secretary of State Mike Pompeo to “closely study the South Africa land and farm seizures and expropriations and the large scale killing of farmers.” More recently, Trump granted “refugee” status to dozens of white Afrikaners, even as his administration ends protections for refugees from other countries

Former American Ambassador to South Africa and Democratic politician Patrick Gaspard posted in 2018 that the idea of large-scale killings of white South African farmers is a “disproven racial myth.”

In launching the Grok 3 model in February, Musk said it was a “maximally truth-seeking AI, even if that truth is sometimes at odds with what is politically correct.” X’s “About Grok” page says that the model is undergoing constant improvement to “ensure Grok remains politically unbiased and provides balanced answers.”

But the recent turn toward unprompted discussions of alleged South African “genocide” has many questioning what kind of explicit adjustments Grok’s political opinions may be getting from human tinkering behind the curtain. “The algorithms for Musk products have been politically tampered with nearly beyond recognition,” journalist Seth Abramson wrote in one representative skeptical post. “They tweaked a dial on the sentence imitator machine and now everything is about white South Africans,” a user with the handle Guybrush Threepwood glibly theorized.

Representatives from xAI were not immediately available to respond to a request for comment from Ars Technica.

xAI’s Grok suddenly can’t stop bringing up “white genocide” in South Africa Read More »

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Disgruntled users roast X for killing Support account

After X (formerly Twitter) announced it would be killing its “Support” account, disgruntled users quickly roasted the social media platform for providing “essentially non-existent” support.

“We’ll soon be closing this account to streamline how users can contact us for help,” X’s Support account posted, explaining that now, paid “subscribers can get support via @Premium, and everyone can get help through our Help Center.”

On X, the Support account was one of the few paths that users had to publicly seek support for help requests the platform seemed to be ignoring. For suspended users, it was viewed as a lifeline. Replies to the account were commonly flooded with users trying to get X to fix reported issues, and several seemingly paying users cracked jokes in response to the news that the account would soon be removed.

“Lololol your support for Premium is essentially non-existent,” a subscriber with more than 200,000 followers wrote, while another quipped “Okay, so no more support? lol.”

On Reddit, X users recently suggested that contacting the Premium account is the only way to get human assistance after briefly interacting with a bot. But some self-described Premium users complained of waiting six months or longer for responses from X’s help center in the Support thread.

Some users who don’t pay for access to the platform similarly complained. But for paid subscribers or content creators, lack of Premium support is perhaps most frustrating, as one user claimed their account had been under review for years, allegedly depriving them of revenue. And another user claimed they’d had “no luck getting @Premium to look into” an account suspension while supposedly still getting charged. Several accused X of sending users into a never-ending loop, where the help center only serves to link users to the help center.

Disgruntled users roast X for killing Support account Read More »

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Twitch makes deal to escape Elon Musk suit alleging X ad boycott conspiracy

Instead, it appears that X decided to sue Twitch after discovering that Twitch was among advertisers who directly referenced the WFA’s brand safety guidelines in its own community guidelines and terms of service. X likely saw this as evidence that Twitch was allegedly conspiring with the WFA to restrict then-Twitter’s ad revenue, since X alleged that Twitch reduced ad purchases to “only a de minimis amount outside the United States, after November 2022,” X’s complaint said.

“The Advertiser Defendants and other GARM-member advertisers acted in parallel to discontinue their purchases of advertising from Twitter, in a marked departure from their prior pattern of purchases,” X’s complaint said.

Now, it seems that X has agreed to drop Twitch from the suit, perhaps partly because the complaint X had about Twitch adhering to WFA brand safety standards is defused since the WFA disbanded the ad industry arm that set those standards.

Unilever struck a similar deal to wriggle out of the litigation, Reuters noted, and remained similarly quiet on the terms, only saying that the brand remained “committed to meeting our responsibility standards to ensure the safety and performance of our brands on the platform.” But other advertisers, including Colgate, CVS, LEGO, Mars, Pinterest, Shell, and Tyson Foods, so far have not.

For Twitch, its deal seems to clearly take a target off its back at a time when some advertisers are reportedly returning to X to stay out of Musk’s crosshairs. Getting out now could spare substantial costs as the lawsuit drags on, even though X CEO Linda Yaccarino declared the ad boycott was over in January. X is still $12 billion in debt, X claimed, after Musk’s xAI bought X last month. External data in January seemed to suggest many big brands were still hesitant to return to the platform, despite Musk’s apparent legal strong-arming and political influence in the Trump administration.

Ars could not immediately reach Twitch or X for comment. But the court docket showed that Twitch was up against a deadline to respond to the lawsuit by mid-May, which likely increased pressure to reach an agreement before Twitch was forced to invest in raising a defense.

Twitch makes deal to escape Elon Musk suit alleging X ad boycott conspiracy Read More »

even-trump-may-not-be-able-to-save-elon-musk-from-his-old-tweets

Even Trump may not be able to save Elon Musk from his old tweets

A loss in the investors’ and SEC’s suits could force Musk to disgorge any ill-gotten gains from the alleged scheme, estimated at $150 million, as well as potential civil penalties.

The SEC and Musk’s X (formerly Twitter) did not respond to Ars’ request to comment. Investors’ lawyers declined to comment on the ongoing litigation.

SEC purge may slow down probes

Under the Biden administration, the SEC alleged that “Musk’s violation resulted in substantial economic harm to investors selling Twitter common stock.” For the lead plaintiffs in the investors’ suit, the Oklahoma Firefighters Pension and Retirement System, the scheme allegedly robbed retirees of gains used to sustain their quality of life at a particularly vulnerable time.

Musk has continued to argue that his alleged $200 million in savings from the scheme was minimal compared to his $44 billion purchase price. But the alleged gains represent about two-thirds of the $290 million price the billionaire paid to support Trump’s election, which won Musk a senior advisor position in the Trump administration, CNBC reported. So it’s seemingly not an insignificant amount of money in the grand scheme.

Likely bending to Musk’s influence, one of Trump’s earliest moves after taking office, CNBC reported, was reversing a 15-year-old policy allowing the SEC director of enforcement to launch probes like the one Musk is currently battling. It allowed the Tesla probe, for example, to be launched just seven days after Musk’s allegedly problematic tweets, the SEC boasted in a 2020 press release.

Now, after Trump’s rule change, investigations must be approved by a vote of SEC commissioners. That will likely slow down probes that the SEC had previously promised years ago would only speed up over time in order to more swiftly protect investors.

SEC expected to reduce corporate fines

For Musk, the SEC has long been a thorn in his side. At least two top officials (1, 2) cited the Tesla settlement as a career highlight, with the agency seeming especially proud of thinking “creatively about appropriate remedies,” the 2020 press release said. Monitoring Musk’s tweets, the SEC said, blocked “potential harm to investors” and put control over Musk’s tweets into the SEC’s hands.

Even Trump may not be able to save Elon Musk from his old tweets Read More »