Mark Zuckerberg, chief executive officer of Meta Platforms Inc., speaks during the virtual Meta Connect event in New York, US, on Tuesday, Oct. 11, 2022.
Michael Nagle | Bloomberg | Getty Images
Over the weekend, Alex Gorlick experienced what he called the worst Facebook glitch he’s seen in the decade he’s worked in digital advertising.
Gorlick, the CEO of marketing agency Intensify, checked in on one of his client’s accounts on Sunday, and noticed that it had spent 90% of its daily Facebook ad budget by 9 a.m. That meant it had only 10% left for the remaining 15 hours of the day.
He then found that the problem was widespread, spanning his entire customer base. Gorlick said that all those advertisers had essentially just wasted most of their money for the day, spending roughly triple the amount they normally would to acquire a customer.
“The results were horrendous,” Gorlick told CNBC. “It’s the biggest malfunction I’ve ever seen on Facebook ads.”
For brands that are already lowering ad costs to manage through a sluggish economy and a mobile ad market that no longer allows for targeting based on user data, Facebook’s miscue is more than just an unfortunate blip. In low-margin industries, where every dollar counts, it can turn a profitable weekend into a big loser, while also raising further questions about the reliability of Facebook’s ad systems.
A spokesperson for Facebook parent Meta acknowledged there was an ad glitch but declined to provide details or an explanation as to why it happened.
“A technical issue that has now been resolved caused ad delivery issues for some advertisers,” the spokesperson said.
How Facebook ad auctions work
In a typical Facebook online ad auction, a company can allocate a certain amount of money to run ads on the social media service over the course of a day to maximize how many eyeballs see the promotion. It appears that on Sunday the Facebook ad system bundled many more ads than normal into the morning hours, resulting in a highly inefficient day.
Data analytics and marketing firm Varos provided data showing that, of the more than 3,000 ecommerce and direct-to-consumer companies that use its technology, the software bug caused a majority of them to experience a rise in cost per thousand impressions, or what those in the industry call CPMs.
About 36% of companies were “very significantly impacted” by the bug, meaning their CPMs at least doubled, Varos said. Varos CEO Yarden Shaked said another third of companies experienced “significant increases but not like bonkers.”
Shaked said the glitch resulted in a “bidding war for nothing.” He compared it to Costco selling a random toaster that suddenly garnered so much demand that the price spiked way beyond market value.
“Everyone came in in the middle of the night for some reason and started a bidding war over that old toaster,” Shaked said. “You know, it’s completely ridiculous.”
Data about the glitch provided by the advertising technology firm Proxima on 108 companies also revealed that these firms spent their “entire day’s budget in the first few hours of the day,” the company said.
Companies that implemented cost caps, or limits on their advertising campaigns, were not impacted by the glitch, Proxima noted. When companies turned off their ad campaigns because of the bug, some bigger brands took advantage and were able to run successful Facebook ad campaigns throughout the day because of a lack of competition.
Additionally, the Facebook ad bug impacted companies running ads tied to Earth Day.
“The fact that it was Earth Day on Saturday, April 22nd meant that brands running sales for Earth Day were the most impacted like organic, eco-friendly brands focused on Earth Day as a key selling period,” the company said.
Barry Hott, a performance marketing consultant, said that at the time of the bug, the situation for companies running Facebook ads seemed “pretty massive, very painful.”
In retrospect, however, Hott believes the overall impact of the ad error might be “pretty small,” considering in the grand scheme of things, companies occasionally deal with big Meta ad errors that impact their campaigns.
Hott noted that Facebook experienced a major ad glitch a day before Black Friday in 2020 as well as another similar bug earlier that summer.
Refunds?
The main issue for advertisers will be whether they get refunds from Meta because of the glitch, industry experts said.
The Meta spokesperson said the company is “conducting a detailed analysis that assesses opportunities for refunds.”
“We have more information on the refunds process here,” the spokesperson added in a statement.
Because of the glitch, “a bunch of advertisers and business owners had a really s—y day,” Hott said, adding that they will have a “crappy week” as they wonder if they will get refunds and if they do, will it be the full amount they believe they should be owed or chump change.
He recommends that if advertisers have access to a Meta customer support representative — a part of Meta that has been hit by layoffs — they need to ask frequently about refunds, or risk being ignored. Because retailers often make business decisions like how many products they should order or sell based on their online advertisements, the software glitch could also impact other areas in a company’s business than just merely an increase to their CPMs.
“Basically, no one at the company is going to care about this problem if nobody’s saying anything about it, so they kind of count on advertisers to forget about this in a week or two weeks,” Hott said. “I tell everyone— I’ve had to do this myself — when these issues happen, you know, make a big stink about it.”
Tesla is facing a federal investigation into possible safety defects with FSD, its partially automated driving system that is also known as Full Self-Driving (Supervised).
Media, vehicle owner and other incident reports to the National Highway Traffic Safety Administration showed that in 44 separate incidents, Tesla drivers using FSD said the system caused them to run a red light, steer into oncoming traffic or commit other traffic safety violations leading to collisions, including some that injured people.
In a notice posted to the agency’s website on Thursday, NHTSA said the investigation concerns “all Tesla vehicles that have been equipped with FSD (Supervised) or FSD (Beta),” which is an estimated 2,882,566 of the company’s electric cars.
Tesla cars, even with FSD engaged, require a human driver ready to brake or steer at any time.
The NHTSA Office of Defects Investigation opened a Preliminary Evaluation to “assess whether there was prior warning or adequate time for the driver to respond to the unexpected behavior” by Tesla’s FSD, or “to safely supervise the automated driving task,” among other things.
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The ODI’s review will also assess “warnings to the driver about the system’s impending behavior; the time given to drivers to respond; the capability of FSD to detect, display to the driver, and respond appropriately to traffic signals; and the capability of FSD to detect and respond to lane markings and wrong-way signage.”
Tesla did not respond to a request for comment on the new federal probe. The company released an updated version of FSD this week, version 14.1, to customers.
For years, Tesla CEO Elon Musk has promised investors that Tesla would someday be able to turn their existing electric vehicles into robotaxis, capable of generating income for owners while they sleep or go on vacation, with a simple software update.
That hasn’t happened yet, and Tesla has since informed owners that future upgrades will require new hardware as well as software releases.
Tesla is testing a Robotaxi-brand ride-hailing service in Texas and elsewhere, but it includes human safety drivers or valets on board who either conduct the drives or manually intervene as needed.
In February this year, Musk and President Donald Trump slashed NHTSA staff as part of a broader effort to reduce the federal workforce, impacting the agency’s ability to investigate vehicle safety and regulate autonomous vehicles, The Washington Post first reported.
Commander Jared Isaacman of Polaris Dawn, a private human spaceflight mission, speaks at a press conference at the Kennedy Space Center in Cape Canaveral, Florida, U.S. August 19, 2024.
Isaacman, who has close ties with SpaceX CEO Elon Musk, was at the White House in September for Trump’s dinner for tech power players. Musk did not attend.
Trump and Isaacman have had multiple in-person meetings in recent weeks to talk about the Shift4 founder’s vision for the space program, according to Bloomberg, citing a person familiar with the meetings.
After a fiery back-and-forth between Musk and Trump over government spending, the president pulled Isaacman’s nomination for the post, saying he was a “blue blooded Democrat, who had never contributed to a Republican before.”
“I also thought it inappropriate that a very close friend of Elon, who was in the Space Business, run NASA, when NASA is such a big part of Elon’s corporate life,” Trump wrote in a Truth Social post on June 6.
Trump named Transportation Secretary Sean Duffy interim head of NASA in July.
Isaacman, who declined to comment, was initially nominated in December to lead the space agency.
Isaacman is a seasoned space traveller, having led two private spaceflights with SpaceX in 2021 and 2024. Shift4 has invested $27.5 million in SpaceX, according to a 2021 filing.
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Isaacman stepped down as CEO from Shift4, the payments company he founded in 1999 at the age of 16, after his nomination was pulled, and now serves as executive chairman.
“Even knowing the outcome, I would do it all over again,” Isaacman wrote about the NASA nomination process in a letter to investors announcing the Shift4 change.
Now, it looks like he gets to do it all over again.
Tensions between Musk and Trump have cooled in the months since, but big challenges face the U.S. space program..
Trump has proposed cutting more than $6 billion from NASA’s budget.
As a result of Trump’s Department of Government Efficiency initiative, which Musk led in the first half of 2025, around 4,000 NASA employees took deferred resignation program offers, cutting the space agency’s staff of 18,000 by about one-fifth.
During the October government shutdown, NASA has made exceptions that allow employees to keep working on missions involving Musk’s SpaceX and Jeff Bezos’ Blue Origin.
An illustration photo shows Sora 2 logo on a smartphone.
Cfoto | Future Publishing | Getty Images
The Creative Artists Agency on Thursday slammed OpenAI’s new video creation app Sora for posing “significant risks” to their clients and intellectual property.
The talent agency, which represents artists including Doja Cat, Scarlett Johanson, and Tom Hanks, questioned whether OpenAI believed that “humans, writers, artists, actors, directors, producers, musicians, and athletes deserve to be compensated and credited for the work they create.”
“Or does Open AI believe they can just steal it, disregarding global copyright principles and blatantly dismissing creators’ rights, as well as the many people and companies who fund the production, creation, and publication of these humans’ work? In our opinion, the answer to this question is obvious,” the CAA wrote.
OpenAI did not immediately respond to CNBC’s request for comment.
The CAA said that it was “open to hearing” solutions from OpenAI and is working with IP leaders, unions, legislators and global policymakers on the matter.
“Control, permission for use, and compensation is a fundamental right of these workers,” the CAA wrote. “Anything less than the protection of creators and their rights is unacceptable.”
Sora, which launched last week and has quickly reached 1 million downloads, allows users to create AI-generated clips often featuring popular characters and brands.
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OpenAI launched with an “opt-out” system, which allowed the use of copyrighted material unless studios or agencies requested that their IP not be used.
CEO Sam Altman later said in a blog post that they would give rightsholders “more granular control over generation of characters.”
Talent agency WME sent a memo to agents on Wednesday that it has “notified OpenAI that all WME clients be opted out of the latest Sora AI update, regardless of whether IP rights holders have opted out IP our clients are associated with,” the LA Times reported.
United Talent Agency also criticized Sora’s use of copyrighted property as “exploitation, not innovation,” in a statement on Thursday.
“There is no substitute for human talent in our business, and we will continue to fight tirelessly for our clients to ensure that they are protected,” UTA wrote. “When it comes to OpenAI’s Sora or any other platform that seeks to profit from our clients’ intellectual property and likeness, we stand with artists.”
In a letter written to OpenAI last week, Disney said it did not authorize OpenAI and Sora to copy, distribute, publicly display or perform any image or video that features its copyrighted works and characters, according to a person familiar with the matter.
Disney also wrote that it did not have an obligation to “opt-out” of appearing in Sora or any OpenAI system to preserve its rights under copyright law, the person said.
The Motion Picture Association issued a statement on Tuesday, urging OpenAI to take “immediate and decisive action” against videos using Sora to produce content infringing on its copyrighted material.
Entertainment companies have expressed numerous copyright concerns as generative AI has surged.
Universal and Disney sued creator Midjourney in June, alleging that the company used and distributed AI-generated characters from their movies despite requests to stop. Disney also sent a cease-and-desist letter to AI startup Character.AI in September, warning the company to stop using its copyrighted characters without authorization.