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The Discord app is seen on an iPhone in this photo illustration in Warsaw, Poland on April 3, 2021.

Jaap Arriens | NurPhoto | Getty Images

We’ve been here and done this before when it comes to social media: a new, fast-growing app is providing a way for online users to share inspiration and encouragement. At some point in most social media companies’ histories, dating all the way back to Facebook’s role in global “democratization” during Arab Spring, early social media success has been focused on positive effects.

The world has come a long way since Arab Spring and through many reckonings with both the benefits and risks of social media, including the potential health and wellness impacts on teenagers. Seattle Public Schools’ recently filed lawsuit against TikTok, Meta, Snap and others alleging a youth mental health crisis caused by social media.

Social media is also facing one of its greatest legal challenges ever, with the Supreme Court poised to review whether Section 230 statute of the Communications Decency Act should provide these companies with immunity from user content liability claims, as has been the case throughout their rise.

So there is good reason for the next big thing in social media to be all about positivity, and here we are again, with social media company Discord announcing the acquisition of Gas this week, a quickly growing social media company designed to promote positive affirmations.

“Gas is all about uplifting and empowering each other through positive affirmations. Its tremendous success shows the opportunity that exists in creating a playful yet meaningful place for young people,” Discord stated in a blog post about the deal. Terms of the deal were not disclosed.

Gas allows users to anonymously share compliments with one another via polls, or as TheVerge noted in a report on the deal, “The app is designed for anonymous compliments and positive affirmations or, as kids say, gassing your friends up.”

The app has gained increasing popularity among teenagers. In just two months since its August launch, Gas surpassed TikTok and BeReal in Apple’s App Store free app rankings, reaching 1 million daily active users. It was crowned as “the hottest app right now” by The Wall Street Journal. It boasted 30,000 new users per hour in October.

Gas already has had its early issues — it was caught up, unfairly, in a sex trafficking hoax this fall, which forced its founder to respond after three percent of users deleted their accounts.

But Gas has continued to grow as a place for teens to engage with peers, amassing 7.4 million installs.

Should social media companies be held liable for user content? The consequences of changing section 230

If you have not heard of Gas, it did not come out of nowhere. Its founder Nikita Bier previously sold tbh, another poll-based app, to Facebook in 2017, but the app was shut down in less than a year due to low usage. Nonetheless, Discord said in the blog post that “Gas’ founders have a proven track record of creating exciting apps and experiences.”

Snapchat’s platform has feature multiple anonymous polling apps, including Yolo and LMK, where users can ask questions to their friends who can then answer anonymously — and also turned out to be far from immune to abuse. Last year, Snap banned anonymous messaging apps.

While anonymous features can pose a specific form of risk to user safety and increase harassment, Gas says it avoids these obstacles by polls consisting of Gas-approved compliments. These compliment prompts prevent users from creating their own polls or sending direct messages, which could include harmful content.

Gas itself explains in its app description that, “Gas is where friends tell you what they love about you. And no, they won’t dunk on you like other anonymous apps. How it works: 1) Join your school 2) Add friends 3) Answer polls 4) Get flames when picked.”

Discord has had its own share of safety issues associated with its success among a younger demographic, with increasing harassment reports on the platform in recent years. The company has been investing heavily to combat this problem, acquiring Sentropy, an AI-based software company focused on fighting abuse and harassment online. Its latest transparency report, published in December 2022, the company said it had disabled 42,458 accounts and removed 14,451 servers for child safety violations during the third quarter of 2022, a 92% decrease in the number of accounts disabled when compared to the previous quarter. 

Entering the social app scene in 2015 as a platform for video game players to chat with one another, Discord has been expanding beyond its roots as an alternative to spotty Skype chats for gamers. The two-time CNBC Disruptor 50 company, has moved beyond its predominately gaming-based uses, with a more general use case voice chat platform and live stream capabilities, while also allowing users to monetize their servers.

As social audio boomed, Discord released Stage channels in 2021, giving users a new way to organize and host large audio events. In July, it released Threads, a way to branch a conversation off of a channel’s main feed without removing it from the channel. The company also has premium membership features, allowing creators and community owners to require a subscription to access all or part of their server, tiered perks, and view analytics on member engagement.

Microsoft was reported to have made a bid for the company at one point, though no deal was reached.

Discord, unlike the first generation social media giants, does not make money from advertisements, and that gives it something else in common with Gas beyond a focus on a younger demographic. Gas has gained its almost $7 million in user spending through paid subscription features like “God Mode” which provides users with hints on who gave them compliments.

For the time being, Gas will operate as a standalone app, but this doesn’t rule out the potential for polls to become a new method of communication on Discord.

“We’re always working to create an inclusive world where no one feels like an outsider and we’re excited to welcome Gas to the Discord community as our next step to fulfilling that vision,” Discord said in the blog post.

One of the toughest tasks the companies will find, as many social media apps have before — keeping the story positive.

CNBC is now accepting nominations for the 2023 Disruptor 50 list – our 11th annual look at the most innovative venture-backed companies. Learn more about eligibility and how to submit an application by Friday, Feb. 17.

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Tesla launches refreshed Model Y in China to fend off domestic rivals

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Tesla launches refreshed Model Y in China to fend off domestic rivals

Tesla launched a revamped version of its Model Y in China.

Tesla

Tesla on Friday announced a revamped version of its popular Model Y in China, as the U.S. electric car giant looks to fend off challenges from domestic rivals.

The Model Y will start at 263,500 Chinese yuan ($35,935), with deliveries set to begin in March. That is 5.4% more expensive than the starting price of the previous Model Y.

A spokesperson for Tesla China said that the new Model Y is only open for pre-sale in the Chinese market, rather than being launched globally.

Tesla’s Model Y refresh comes after the auto giant this month reported its first ever annual decline in overall deliveries for 2024.

Elon Musk’s electric vehicle firm is facing heightened competition around the world, from startups and traditional carmakers in Europe. In China, the company continues to face an onslaught of rivals from BYD to newer players like Xpeng and Nio.

Jason Low, principal analyst at Canalys, notes that the Tesla Model Y was the best-selling EV in China in 2024 and that the popularity of the car “remains high.” However, he noted that the competition in the sports utility vehicle (SUV) segment with vehicles priced between 250,000 yuan and 350,000 yuan “has been fierce.”

“Tesla must showcase compelling smart features, particularly a unique but well localized cockpit and services ecosystem,” as well as “effective” semi-autonomous driver assistance features “to ensure its competitiveness in the market,” Low added.

Tesla is offering a number of incentives for customers to buy the Model Y including a five-year 0% interest financing plan.

The new Model Y can accelerate from 0 kilometers per hour to 100 kilometers per hour in 4.3 seconds, Tesla said, exceeding the speed capabilities of the previous vehicle. The Model Y Long Range has a further driving range on a single charge versus its predecessor.

Tesla has not introduced a new model since it began delivering the Cybertruck in late 2023, which starts at nearly $80,000.

Investors have been yearning for a new mass-market model to reinvigorate sales. Tesla has previously hinted that that a new affordable model could be launched in the first half of 2025.

Despite Tesla’s headwinds, the company’s stock is up nearly 70% over the last 12 months, partly due to CEO Musk’s close relationship with U.S. President-elect Donald Trump.

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World’s biggest chipmaker TSMC posts record 2024 revenue as AI boost continues

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World's biggest chipmaker TSMC posts record 2024 revenue as AI boost continues

The logo for Taiwan Semiconductor Manufacturing Company is displayed on a screen on the floor of the New York Stock Exchange on Sept. 26, 2023.

Brendan Mcdermid | Reuters

Taiwan Semiconductor Manufacturing Co. posted December quarter revenue that topped analyst estimates, as the company continues to get a boost from the AI boom.

The world’s largest chip manufacturer reported fourth-quarter revenue of 868.5 billion New Taiwan dollars ($26.3 billion), according to CNBC calculations, up 38.8% year-on-year.

That beat Refinitiv consensus estimates of 850.1 billion New Taiwan dollars.

For 2024, TSMC’s revenue totaled 2.9 trillion New Taiwan Dollars, its highest annual sales since going public in 1994.

TSMC manufacturers semiconductors for some of the world’s biggest companies, including Apple and Nvidia.

TSMC is seen as the most advanced chipmaker in the world, given its ability to manufacture leading-edge semiconductors. The company has been helped along by the strong demand for AI chips, particularly from Nvidia, as well as ever-improving smartphone semiconductors.

“TSMC has benefited significantly from the strong demand for AI,” Brady Wang, associate director at Counterpoint Research told CNBC.

Wang said “capacity utilization” for TSMC’s 3 nanometer and 5 nanometer processes — the most advanced chips — “has consistently exceeded 100%.”

AI graphics processing units (GPUs), such as those designed by Nvidia, and other artificial intelligence chips are driving this demand, Wang said.

Taiwan-listed shares of TSMC have risen 88% over the last 12 months.

TSMC’s latest sales figures may also give hope to investors that the the demand for artificial intelligence chips and services may continue into 2025.

Foxconn, which assembles Apple’s iPhones, reported its highest-ever fourth quarter revenue this week, as it notched strong demand for AI servers.

Meanwhile, Microsoft this month said that it plans to spend $80 billion in its fiscal year to June on the construction of data centers that can handle artificial intelligence workloads.

CNBC’s Jordan Novet contributed to this report.

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Supreme Court set to hear oral arguments on challenge to TikTok ban

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Supreme Court set to hear oral arguments on challenge to TikTok ban

Tik Tok creators gather before a press conference to voice their opposition to the “Protecting Americans from Foreign Adversary Controlled Applications Act,” pending crackdown legislation on TikTok in the House of Representatives, on Capitol Hill in Washington, U.S., March 12, 2024.

Craig Hudson | Reuters

The Supreme Court on Friday will hear oral arguments in the case involving the future of TikTok in the U.S., which could ban the popular app as soon as next week.

The justices will consider whether the Protecting Americans from Foreign Adversary Controlled Applications Act, the law that targets TikTok’s ban and imposes harsh civil penalties for app “entities” that continue to carry the service after Jan.19, violates the U.S. Constitution’s free speech protections.

It’s unclear when the court will hand down a decision, and if China’s ByteDance continues to refuse to divest TikTok to an American company, it faces a complete ban nationwide.

What will change about the user experience?

The roughly 115 million U.S. TikTok monthly active users could face a range of scenarios depending on when the Supreme Court hands down a decision.

If no word comes before the law takes effect on Jan. 19 and the ban goes through, it’s possible that users would still be able to post or engage with the app if they already have it downloaded. However, those users would likely be unable to update or redownload the app after that date, multiple legal experts said.

Thousands of short-form video creators who generate income from TikTok through ad revenue, paid partnerships, merchandise and more will likely need to transition their businesses to other platforms, like YouTube or Instagram.

“Shutting down TikTok, even for a single day, would be a big deal, not just for people who create content on TikTok, but everyone who shares or views content,” said George Wang, a staff attorney at the Knight First Amendment Institute who helped write the institute’s amicus briefs on the case. 

“It sets a really dangerous precedent for how we regulate speech online,” Wang said.

Who supports and opposes the ban?

Dozens of high-profile amicus briefs from organizations, members of Congress and President-elect Donald Trump were filed supporting both the government and ByteDance.

The government, led by Attorney General Merrick Garland, alleges that until ByteDance divests TikTok, the app remains a “powerful tool for espionage” and a “potent weapon for covert influence operations.”

Trump’s brief did not voice support for either side, but it did ask the court to oppose banning the platform and allow him to find a political resolution that allows the service to continue while addressing national security concerns. 

The short-form video app played a notable role in both Trump and Democratic nominee Kamala Harris’ presidential campaigns in 2024, and it’s one of the most common news sources for younger voters.

In a September Truth Social post, Trump wrote in all caps Americans who want to save TikTok should vote for him. The post was quoted in his amicus brief. 

What comes next?

It appears TikTok could really get shut down, says Jim Cramer

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