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Elon Musk, CEO of Tesla, speaks with CNBC on May 16th, 2023.

David A. Grogan | CNBC

The sudden departure of Twitter executives tasked with content moderation and brand safety has left the company more vulnerable than ever to hate speech.

On Thursday, Twitter’s vice president of trust and safety, Ella Irwin, resigned from the company. Following Irwin’s departure, the company’s head of brand safety and ad quality, A.J. Brown, reportedly left, as did Maie Aiyed, a program manager who worked on brand safety partnerships.

It’s been just over seven months since Elon Musk closed his $44 billion purchase of Twitter, an investment that’s so far has been a giant money loser. Musk has dramatically downsized the company’s workforce and rolled back policies that restricted what kind of content could circulate. In response, numerous brands suspended or decreased their advertising spending, as several civil rights groups have documented.

Twitter, under Musk, is the fourth most-hated brand in the U.S. according to the 2023 Axios Harris reputation rankings.

The controversy surrounding Musk’s control of Twitter continues to build.

This week, Musk said it’s not against Twitter’s terms of service to misgender trans people on the platform. He said doing so is merely “rude” but not illegal.” LGBTQ+ advocates and researchers dispute his position, claiming it invites bullying of trans people. On Friday, Musk boosted a video on Twitter that was deemed transphobic by these groups.

Numerous LGBTQ organizations expressed dismay to NBC News over Musk’s decision, saying the company’s new policies will lead to an uptick in anti-trans hate speech and online abuse.

Although Musk recently hired former NBC Universal global advertising chief Linda Yaccarino to succeed him as CEO, it’s unclear how the new boss will assuage advertisers’ concerns regarding racist, anti-Semitic, transphobic and homophobic content in light of the recent departures and Musk’s ongoing role as majority owner and technology chief.

Even before the latest high-profile exits, Musk had been reducing the number of workers tasked with safety and content moderation as part of the company’s widespread layoffs. He eliminated the entire AI ethics team, which was responsible for ensuring that harmful content wasn’t being algorithmically recommended to users.

Musk, who is also the CEO of Tesla and SpaceX, has recently downplayed concerns about the prevalence of hate speech on Twitter. He claimed during a Wall Street Journal event that since he took over the company in October, hate speech on the platform has declined, and that Twitter has slashed “spam, scams and bots” by “at least 90%.”

Experts and ad industry insiders told CNBC that there’s no evidence to support those claims. Some say Twitter is actively impeding independent researchers who are attempting to track such metrics.

Twitter didn’t provide a comment for this story.

The state of hate speech on Twitter

In a paper published in April that will be presented at the upcoming International Conference on Web and Social Media in Cyprus, researchers from Oregon State, University of Southern California, and other institutions showed that hate speech has increased since Musk bought Twitter.

The authors wrote that the accounts known for posts containing hateful content and slurs targeting Blacks, Asians, LGTBQ groups and others increased such tweeting “dramatically following Musk’s takeover” and do not show signs of slowing down. They found that Twitter hasn’t made progress on bots, which have remained as prevalent and active on Twitter as they were prior to Musk’s tenure.

Musk previously indicated that Twitter’s recommendation algorithms surface less offensive content to people who don’t want to see it.

Tesla CEO Elon Musk discusses the implications of A.I. on his children's future in the workforce

Keith Burghardt, one of the authors of the paper and a computer scientist at the University of Southern California’s Information Sciences Institute, told CNBC that the deluge of hate speech and other explicit content correlates to the reduction of people working on trust and safety issues and the relaxed content moderation policies.

Musk also said at the WSJ event that “most advertisers” had come back to Twitter.

Louis Jones, a long-time media and advertising executive who now works at the Brand Safety Institute, said it’s not clear how many advertisers have resumed spending but that “many advertisers remain on pause, as Twitter has limited reach compared to some other platforms.”

Jones said many advertisers are waiting to see how levels of “toxicity” and hate speech on Twitter change as the site appears to slant towards more right-wing users and as U.S. elections approach. He said one big challenge for brands is that Musk and Twitter haven’t made clear what they count in their measurements assessing hate speech, spam, scams and bots.

Researchers are calling on Musk to provide data to back up his recent claims.

“More data is critical to really understand whether there is a continuous decrease in either hate speech or bots,” Burghardt said. “That again emphasizes the need for greater transparency and for academics to have a freely available data.”

Show us the data

Getting that data is becoming harder.

Twitter recently started charging companies for access to its application programing interface (API), which allows them to incorporate and analyze Twitter data. The lowest-paid tier costs $42,000 for 50 million tweets.

Imran Ahmed, CEO of the Center for Countering Digital Hate nonprofit, said that because researchers now have “to pay a fortune” to access the API, they’re having to rely on other potential routes to the data.

“Twitter under Elon Musk has been more opaque,” Ahmed said.

He added that Twitter’s search function is less effective than in the past and that view counts, as seen on certain tweets, can suddenly change, making them unstable to use.

“We no longer have any confidence in the accuracy of the data,” Ahmed said.

The CCDH analyzed a series of tweets from the beginning of 2022 through February 28, 2023. It released a report in March analyzing over 1.7 million tweets collected using a data-scraping tool and Twitter’s search function and discovered that tweets mentioning the hateful “grooming” narrative have risen 119% since Musk took over.

That refers to “the false and hateful lie” that the LGBTQ+ community grooms children. The CCDH found that a small number of popular Twitter accounts like Libs of TikTok and Gays Against Groomers have been driving the “hateful ‘grooming’ narrative online.”

The Simon Wiesenthal Center, a Jewish human rights group, continues to find anti-Semitic posts on Twitter. The group recently conducted its 2023 study of digital terrorism and hate on social platforms and graded Twitter a D-, putting it on par with Russia’s VK as the worst in the world for large social networks.

Rabbi Abraham Cooper, associate dean and director of global social action agenda at the center, called on Musk to meet with him to discuss the rise of hate speech on Twitter. He said he has yet to receive a response.

“They need to look at it seriously,” Cooper said. If they don’t, he said, lawmakers are going to be called upon to “do something about it.”

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How Elon Musk’s plan to slash government agencies and regulation may benefit his empire

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How Elon Musk’s plan to slash government agencies and regulation may benefit his empire

Elon Musk’s business empire is sprawling. It includes electric vehicle maker Tesla, social media company X, artificial intelligence startup xAI, computer interface company Neuralink, tunneling venture Boring Company and aerospace firm SpaceX. 

Some of his ventures already benefit tremendously from federal contracts. SpaceX has received more than $19 billion from contracts with the federal government, according to research from FedScout. Under a second Trump presidency, more lucrative contracts could come its way. SpaceX is on track to take in billions of dollars annually from prime contracts with the federal government for years to come, according to FedScout CEO Geoff Orazem.

Musk, who has frequently blamed the government for stifling innovation, could also push for less regulation of his businesses. Earlier this month, Musk and former Republican presidential candidate Vivek Ramaswamy were tapped by Trump to lead a government efficiency group called the Department of Government Efficiency, or DOGE.

In a recent commentary piece in the Wall Street Journal, Musk and Ramaswamy wrote that DOGE will “pursue three major kinds of reform: regulatory rescissions, administrative reductions and cost savings.” They went on to say that many existing federal regulations were never passed by Congress and should therefore be nullified, which President-elect Trump could accomplish through executive action. Musk and Ramaswamy also championed the large-scale auditing of agencies, calling out the Pentagon for failing its seventh consecutive audit. 

“The number one way Elon Musk and his companies would benefit from a Trump administration is through deregulation and defanging, you know, giving fewer resources to federal agencies tasked with oversight of him and his businesses,” says CNBC technology reporter Lora Kolodny.

To learn how else Elon Musk and his companies may benefit from having the ear of the president-elect watch the video.

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Why X’s new terms of service are driving some users to leave Elon Musk’s platform

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Why X's new terms of service are driving some users to leave Elon Musk's platform

Elon Musk attends the America First Policy Institute gala at Mar-A-Lago in Palm Beach, Florida, Nov. 14, 2024.

Carlos Barria | Reuters

X’s new terms of service, which took effect Nov. 15, are driving some users off Elon Musk’s microblogging platform. 

The new terms include expansive permissions requiring users to allow the company to use their data to train X’s artificial intelligence models while also making users liable for as much as $15,000 in damages if they use the platform too much. 

The terms are prompting some longtime users of the service, both celebrities and everyday people, to post that they are taking their content to other platforms. 

“With the recent and upcoming changes to the terms of service — and the return of volatile figures — I find myself at a crossroads, facing a direction I can no longer fully support,” actress Gabrielle Union posted on X the same day the new terms took effect, while announcing she would be leaving the platform.

“I’m going to start winding down my Twitter account,” a user with the handle @mplsFietser said in a post. “The changes to the terms of service are the final nail in the coffin for me.”

It’s unclear just how many users have left X due specifically to the company’s new terms of service, but since the start of November, many social media users have flocked to Bluesky, a microblogging startup whose origins stem from Twitter, the former name for X. Some users with new Bluesky accounts have posted that they moved to the service due to Musk and his support for President-elect Donald Trump.

Bluesky’s U.S. mobile app downloads have skyrocketed 651% since the start of November, according to estimates from Sensor Tower. In the same period, X and Meta’s Threads are up 20% and 42%, respectively. 

X and Threads have much larger monthly user bases. Although Musk said in May that X has 600 million monthly users, market intelligence firm Sensor Tower estimates X had 318 million monthly users as of October. That same month, Meta said Threads had nearly 275 million monthly users. Bluesky told CNBC on Thursday it had reached 21 million total users this week.

Here are some of the noteworthy changes in X’s new service terms and how they compare with those of rivals Bluesky and Threads.

Artificial intelligence training

X has come under heightened scrutiny because of its new terms, which say that any content on the service can be used royalty-free to train the company’s artificial intelligence large language models, including its Grok chatbot.

“You agree that this license includes the right for us to (i) provide, promote, and improve the Services, including, for example, for use with and training of our machine learning and artificial intelligence models, whether generative or another type,” X’s terms say.

Additionally, any “user interactions, inputs and results” shared with Grok can be used for what it calls “training and fine-tuning purposes,” according to the Grok section of the X app and website. This specific function, though, can be turned off manually. 

X’s terms do not specify whether users’ private messages can be used to train its AI models, and the company did not respond to a request for comment.

“You should only provide Content that you are comfortable sharing with others,” read a portion of X’s terms of service agreement.

Though X’s new terms may be expansive, Meta’s policies aren’t that different. 

The maker of Threads uses “information shared on Meta’s Products and services” to get its training data, according to the company’s Privacy Center. This includes “posts or photos and their captions.” There is also no direct way for users outside of the European Union to opt out of Meta’s AI training. Meta keeps training data “for as long as we need it on a case-by-case basis to ensure an AI model is operating appropriately, safely and efficiently,” according to its Privacy Center. 

Under Meta’s policy, private messages with friends or family aren’t used to train AI unless one of the users in a chat chooses to share it with the models, which can include Meta AI and AI Studio.

Bluesky, which has seen a user growth surge since Election Day, doesn’t do any generative AI training. 

“We do not use any of your content to train generative AI, and have no intention of doing so,” Bluesky said in a post on its platform Friday, confirming the same to CNBC as well.

Liquidated damages

Bluesky CEO: Our platform is 'radically different' from anything else in social media

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The Pentagon’s battle inside the U.S. for control of a new Cyber Force

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The Pentagon's battle inside the U.S. for control of a new Cyber Force

A recent Chinese cyber-espionage attack inside the nation’s major telecom networks that may have reached as high as the communications of President-elect Donald Trump and Vice President-elect J.D. Vance was designated this week by one U.S. senator as “far and away the most serious telecom hack in our history.”

The U.S. has yet to figure out the full scope of what China accomplished, and whether or not its spies are still inside U.S. communication networks.

“The barn door is still wide open, or mostly open,” Senator Mark Warner of Virginia and chairman of the Senate Intelligence Committee told the New York Times on Thursday.

The revelations highlight the rising cyberthreats tied to geopolitics and nation-state actor rivals of the U.S., but inside the federal government, there’s disagreement on how to fight back, with some advocates calling for the creation of an independent federal U.S. Cyber Force. In September, the Department of Defense formally appealed to Congress, urging lawmakers to reject that approach.

Among one of the most prominent voices advocating for the new branch is the Foundation for Defense of Democracies, a national security think tank, but the issue extends far beyond any single group. In June, defense committees in both the House and Senate approved measures calling for independent evaluations of the feasibility to create a separate cyber branch, as part of the annual defense policy deliberations.

Drawing on insights from more than 75 active-duty and retired military officers experienced in cyber operations, the FDD’s 40-page report highlights what it says are chronic structural issues within the U.S. Cyber Command (CYBERCOM), including fragmented recruitment and training practices across the Army, Navy, Air Force, and Marines.

“America’s cyber force generation system is clearly broken,” the FDD wrote, citing comments made in 2023 by then-leader of U.S. Cyber Command, Army General Paul Nakasone, who took over the role in 2018 and described current U.S. military cyber organization as unsustainable: “All options are on the table, except the status quo,” Nakasone had said.

Concern with Congress and a changing White House

The FDD analysis points to “deep concerns” that have existed within Congress for a decade — among members of both parties — about the military being able to staff up to successfully defend cyberspace. Talent shortages, inconsistent training, and misaligned missions, are undermining CYBERCOM’s capacity to respond effectively to complex cyber threats, it says. Creating a dedicated branch, proponents argue, would better position the U.S. in cyberspace. The Pentagon, however, warns that such a move could disrupt coordination, increase fragmentation, and ultimately weaken U.S. cyber readiness.

As the Pentagon doubles down on its resistance to establishment of a separate U.S. Cyber Force, the incoming Trump administration could play a significant role in shaping whether America leans toward a centralized cyber strategy or reinforces the current integrated framework that emphasizes cross-branch coordination.

Known for his assertive national security measures, Trump’s 2018 National Cyber Strategy emphasized embedding cyber capabilities across all elements of national power and focusing on cross-departmental coordination and public-private partnerships rather than creating a standalone cyber entity. At that time, the Trump’s administration emphasized centralizing civilian cybersecurity efforts under the Department of Homeland Security while tasking the Department of Defense with addressing more complex, defense-specific cyber threats. Trump’s pick for Secretary of Homeland Security, South Dakota Governor Kristi Noem, has talked up her, and her state’s, focus on cybersecurity.

Former Trump officials believe that a second Trump administration will take an aggressive stance on national security, fill gaps at the Energy Department, and reduce regulatory burdens on the private sector. They anticipate a stronger focus on offensive cyber operations, tailored threat vulnerability protection, and greater coordination between state and local governments. Changes will be coming at the top of the Cybersecurity and Infrastructure Security Agency, which was created during Trump’s first term and where current director Jen Easterly has announced she will leave once Trump is inaugurated.

Cyber Command 2.0 and the U.S. military

John Cohen, executive director of the Program for Countering Hybrid Threats at the Center for Internet Security, is among those who share the Pentagon’s concerns. “We can no longer afford to operate in stovepipes,” Cohen said, warning that a separate cyber branch could worsen existing silos and further isolate cyber operations from other critical military efforts.

Cohen emphasized that adversaries like China and Russia employ cyber tactics as part of broader, integrated strategies that include economic, physical, and psychological components. To counter such threats, he argued, the U.S. needs a cohesive approach across its military branches. “Confronting that requires our military to adapt to the changing battlespace in a consistent way,” he said.

In 2018, CYBERCOM certified its Cyber Mission Force teams as fully staffed, but concerns have been expressed by the FDD and others that personnel were shifted between teams to meet staffing goals — a move they say masked deeper structural problems. Nakasone has called for a CYBERCOM 2.0, saying in comments early this year “How do we think about training differently? How do we think about personnel differently?” and adding that a major issue has been the approach to military staffing within the command.

Austin Berglas, a former head of the FBI’s cyber program in New York who worked on consolidation efforts inside the Bureau, believes a separate cyber force could enhance U.S. capabilities by centralizing resources and priorities. “When I first took over the [FBI] cyber program … the assets were scattered,” said Berglas, who is now the global head of professional services at supply chain cyber defense company BlueVoyant. Centralization brought focus and efficiency to the FBI’s cyber efforts, he said, and it’s a model he believes would benefit the military’s cyber efforts as well. “Cyber is a different beast,” Berglas said, emphasizing the need for specialized training, advancement, and resource allocation that isn’t diluted by competing military priorities.

Berglas also pointed to the ongoing “cyber arms race” with adversaries like China, Russia, Iran, and North Korea. He warned that without a dedicated force, the U.S. risks falling behind as these nations expand their offensive cyber capabilities and exploit vulnerabilities across critical infrastructure.

Nakasone said in his comments earlier this year that a lot has changed since 2013 when U.S. Cyber Command began building out its Cyber Mission Force to combat issues like counterterrorism and financial cybercrime coming from Iran. “Completely different world in which we live in today,” he said, citing the threats from China and Russia.

Brandon Wales, a former executive director of the CISA, said there is the need to bolster U.S. cyber capabilities, but he cautions against major structural changes during a period of heightened global threats.

“A reorganization of this scale is obviously going to be disruptive and will take time,” said Wales, who is now vice president of cybersecurity strategy at SentinelOne.

He cited China’s preparations for a potential conflict over Taiwan as a reason the U.S. military needs to maintain readiness. Rather than creating a new branch, Wales supports initiatives like Cyber Command 2.0 and its aim to enhance coordination and capabilities within the existing structure. “Large reorganizations should always be the last resort because of how disruptive they are,” he said.

Wales says it’s important to ensure any structural changes do not undermine integration across military branches and recognize that coordination across existing branches is critical to addressing the complex, multidomain threats posed by U.S. adversaries. “You should not always assume that centralization solves all of your problems,” he said. “We need to enhance our capabilities, both defensively and offensively. This isn’t about one solution; it’s about ensuring we can quickly see, stop, disrupt, and prevent threats from hitting our critical infrastructure and systems,” he added.

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