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Lakinya Francis is building a LinkedIn account, Haley Sanchez is expanding her email list and Michael Elefante plans to build out his website.

“We get so fixated on what’s working and that’s fine but we need to have a backup plan, especially when we’re relying so much on technology,” said Francis, who runs a consulting company that helps people make money through vending machines.

Influencers who have long relied on Instagram and Facebook to connect with fans, advertise and sell products, are rethinking where they post their content after suffering losses when the company’s platforms went offline for several hours on Monday.

CNBC spoke with 10 online creators and small business owners who use Facebook, its Instagram or WhatsApp services, or a combination of all three for this story. Each of their estimated losses during Facebook’s outage ranged from a few hundred dollars to over $5,000 from sales, affiliate links, sponsored posts and product launches.

It’s a demonstration of just how big Facebook’s influence is over the online economy. Even a small outage means losses for people who rely on Facebook services to do their work or advertise their products. But a record six-hour outage is even worse.

Zuckerberg’s investment in creators and small businesses

Facebook’s vice president of infrastructure Santosh Janardhan apologized for the mass outage in a blog post late Monday. Janardhan blamed “configuration changes on the backbone routers,” for taking services down, but did not specify what changes happened.

More than 200 million businesses actively use Facebook’s tools and numerous content creators rely on Instagram for sponsored posts, affiliate links, and sales revenue. And the outage occurred as CEO Mark Zuckerberg and Facebook make an aggressive push to incentivize and woo creators from the likes of TikTok, Snapchat, and other social media platforms.

Last year, Instagram launched a short-length video feature called Reels to compete with TikTok, and Zuckerberg recently said the company would pay out $1 billion through 2022 to users who create content for both Facebook and Instagram. Facebook also said it won’t take a cut from creator features like online events and fan subscriptions until 2023, and announced new ways they could make money on Instagram in April.

“Investing in creators isn’t new for us, but I’m excited to expand this work over time,” he wrote on Facebook earlier this year.

Along with a refund, Facebook and Instagram should offer something like double exposure to those who prepaid for advertising on Monday, said Michael Heller, CEO and founder of Talent Resources, a marketing agency that deals with influencers.

Most companies and influencers with campaign posts planned for Monday pushed to Tuesday or even Friday in case of glitches, said Alexa Vogue, vice president of brand partnerships at TTPM Influencer Talent Management. An outage on YouTube or TikTok, where her clients get paid per view, would have caused more financial damage, she adds.

“Yes it was a wake-up call, but in the grand scheme of things influencers that are successful will always be successful,” she said.

The need to diversify

Many creators and small businesses say Instagram is the platform of choice. It’s easy to connect with users through direct messages and stories, and it offers a more focused community of dedicated followers that convert to sales.

Now, the majority said they would focus on building out their website and diversifying what platforms they are using, the influencers CNBC spoke with said. Some used Twitter, TikTok and email to beef up sales and connect with audiences during the shutdown.

Francis, who runs the consulting company, plans to utilize LinkedIn and email lists, a tool that helped her make some sales during Monday’s outage.

For Sanchez, who operates a small candle store, the outage came during a busy season gearing up for the holidays. She regularly uses Instagram to tag products, update customers through stories and divert people to her Shopify store.

“That’s where I’m making my business,” Sanchez said. “I’m not making hundreds of sales a day. I’m a smaller candle company but this is my full-time job. So even if I made three sales that I potentially lost, that’s important to me.”

She used Monday to reach out to customers and build up her email list in preparation for future outages so she can better communicate with customers.

Elliott Elkhoury, who sells resources for real estate investors, estimates he lost $3,000 to $5,000 on Monday between missing traffic to his platform and social media, and the inability to run ads.

Between advertising dollars and branded content, Heller suspects losses from Monday ranged in the hundreds of millions. The financial hit to clients likely spanned $3 million to $4 million dollars, he adds.

Michael Elefante, who runs short-term rentals, and teaches others how to run them, estimates the losses at $1,500 to $2,500 through affiliate links and paid mentorships. Now, he’s going to focus on direct mail messaging and his website.

John Eringman, a financial content creator with over 50,000 followers on Instagram and 1.2 million on TikTok, estimates he lost a few hundred dollars. That came from a combination of book sales and one-on-one coaching sessions through his Instagram.

Eringman has diversified his business by creating a following on TikTok and a website. But if the outage extended into Wednesday, he could’ve lost $2,500 on a sponsored post for Instagram and TikTok.

“There is a lifespan to social media,” he says. “Make sure you are owning your audience rather than letting Facebook or Instagram own your audience.”

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Cognition to buy AI startup Windsurf days after Google poached CEO in $2.4 billion licensing deal

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Cognition to buy AI startup Windsurf days after Google poached CEO in .4 billion licensing deal

In this photo illustration, a man seen holding a smartphone with the logo of US artificial intelligence company Cognition AI Inc. in front of website.

Timon Schneider | SOPA Images | Sipa USA | AP

Artificial intelligence startup Cognition announced it’s acquiring Windsurf, the AI coding company that lost its CEO and several other senior employees to Google just days earlier.

Cognition said on Monday that it will purchase Windsurf’s intellectual property, product, trademark, brand and talent, but didn’t disclose terms of the deal. It’s the latest development in an AI talent war, as companies like Meta, Google and OpenAI fiercely compete for top engineers and researchers.

OpenAI had been in talks to acquire Windsurf for about $3 billion in April, but the deal fell apart, and Google said on Friday that it hired Windsurf’s co-founder and CEO Varun Mohan. Google is paying $2.4 billion in licensing fees and for compensation, as CNBC previously reported.

“Every new employee of Cognition will be treated the same way as existing employees: with transparency, fairness, and deep respect for their abilities and value,” Cognition CEO Scott Wu wrote in a memo to employees on Monday. “After today, our efforts will be as a united and aligned team. There’s only one boat and we’re all in it together.”

Cognition didn’t immediately respond to CNBC’s request for comment. Windsurf directed CNBC to Cognition.

Cognition is best known for its AI coding agent named Devin, which is designed to help engineers build software faster. As of March, the startup had raised hundreds of millions of dollars at a valuation of close to $4 billion, according to a report from Bloomberg.

Both companies are backed by Peter Thiel’s Founders Fund. Other investors in Windsurf include Greenoaks, Kleiner Perkins and General Catalyst.

“I’m overwhelmed with excitement and optimism, but most of all, gratitude,” Jeff Wang, the interim CEO of Windsurf, wrote in a post on X on Monday. “Trying times reveal character, and I couldn’t be prouder of how every single person at Windsurf showed up these last three days for each other and for our users.”

Wu said that the acquisition ensures all Windsurf employees are “treated with respect and well taken care of in this transaction.” All employees will participate financially in the deal, have vesting cliffs waived for their work to date and receive fully accelerated vesting for their, according to the memo.

“There’s never been a more exciting time to build,” Wu wrote.

WATCH: Google snatches Windsurf CEO after OpenAI deal dissolves

Google snatches Windsurf CEO after OpenAI deal dissolves

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Musk’s xAI faces European scrutiny over Grok’s ‘horrific’ antisemitic posts

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Musk's xAI faces European scrutiny over Grok's 'horrific' antisemitic posts

The Grok logo is being displayed on a smartphone with Xai visible in the background in this photo illustration on April 1, 2024. 

Jonathan Raa | Nurphoto | Getty Images

The European Union on Monday called in representatives from Elon Musk‘s xAI after the company’s social network X, and chatbot Grok, generated and spread anti-semitic hate speech, including praise for Adolf Hitler, last week.

A spokesperson for the European Commission told CNBC via e-mail that a technical meeting will take place on Tuesday.

xAI did not immediately respond to a request for comment.

Sandro Gozi, a member of Italy’s parliament and member of the Renew Europe group, last week urged the Commission to hold a formal inquiry.

“The case raises serious concerns about compliance with the Digital Services Act (DSA) as well as the governance of generative AI in the Union’s digital space,” Gozi wrote.

X was already under a Commission probe for possible violations of the DSA.

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Grok also generated and spread offensive posts about political leaders in Poland and Turkey, including Polish Prime Minister Donald Tusk and Turkish President Recep Erdogan.

Over the weekend, xAI posted a statement apologizing for the hateful content.

“First off, we deeply apologize for the horrific behavior that many experienced. … After careful investigation, we discovered the root cause was an update to a code path upstream of the @grok bot,” the company said in the statement.

Musk and his xAI team launched a new version of Grok Wednesday night amid the backlash. Musk called it “the smartest AI in the world.”

xAI works with other businesses run and largely owned by Musk, including Tesla, the publicly traded automaker, and SpaceX, the U.S. aerospace and defense contractor.

Despite Grok’s recent outburst of hate speech, the U.S. Department of Defense awarded xAI a $200 million contract to develop AI. Anthropic, Google and OpenAI also received AI contracts.

CNBC’s April Roach contributed to this article.

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Meta removes 10 million Facebook profiles in effort to combat spam

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Meta removes 10 million Facebook profiles in effort to combat spam

Meta CEO Mark Zuckerberg looks on before the luncheon on the inauguration day of U.S. President Donald Trump’s second presidential term in Washington on Jan. 20, 2025.

Evelyn Hockstein | Reuters

Meta on Monday said it has removed about 10 million profiles for impersonating large content producers through the first half of 2025 as part of an effort by the company to combat “spammy content.”

The crackdown is part of Meta’s broader effort to make the Facebook feed more relevant and authentic by taking action against and removing accounts that engage in “spammy” behavior, such as content created using artificial intelligence tools.

As part of that initiative, Meta is also rolling out stricter measures to promote original posts from creators, the company said in a blog post.

Facebook also took action against approximately 500,000 accounts that it identified to be engaged in inauthentic behavior and spam. These actions included demoting comments and reducing distribution of content, which are intended to make it harder for these accounts to monetize their posts.

Meta said unoriginal content is when images or videos are reused without crediting the original creator. Meta said it now has technology that will detect duplicate videos and reduce the distribution of that content.

The action against spam and inauthentic content comes as Meta increases its investment in AI, with CEO Mark Zuckerberg on Monday announcing plans to spend “hundreds of billions of dollars” on AI compute infrastructure to bring the company’s first supercluster online next year.

This mandate comes at a time when AI is making it easier to mass-produce content across social media platforms. Other platforms are also taking action to combat the increase of spammy, low-quality content on social media, also known as “AI slop.”

Google’s YouTube announced a change in policy this month that prevents content that is mass-produced or repetitive from being eligible for being awarded revenue.

This announcement sparked confusion on social media, with many users believing this was a reversal on YouTube’s stance on AI content. However, YouTube clarified that the policy change is aimed at curbing unoriginal, spammy and repetitive videos.

“We welcome creators using AI tools to enhance their storytelling, and channels that use AI in their content remain eligible to monetize,” said a spokesperson for YouTube in a blog post to clarify the new policy.

YouTube’s new policy change will take effect on Tuesday.

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