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, reportedlyleft, 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.
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.”
Apple is losing market share in China due to declining iPhone shipments, supply chain analyst Ming-Chi Kuo wrote in a report on Friday. The stock slid 2.4%.
“Apple has adopted a cautious stance when discussing 2025 iPhone production plans with key suppliers,” Kuo, an analyst at TF Securities, wrote in the post. He added that despite the expected launch of the new iPhone SE 4, shipments are expected to decline 6% year over year for the first half of 2025.
Kuo expects Apple’s market share to continue to slide, as two of the coming iPhones are so thin that they likely will only support eSIM, which the Chinese market currently does not promote.
“These two models could face shipping momentum challenges unless their design is modified,” he wrote.
Kuo wrote that in December, overall smartphone shipments in China were flat from a year earlier, but iPhone shipments dropped 10% to 12%.
There is also “no evidence” that Apple Intelligence, the company’s on-device artificial intelligence offering, is driving hardware upgrades or services revenue, according to Kuo. He wrote that the feature “has not boosted iPhone replacement demand,” according to a supply chain survey he conducted, and added that in his view, the feature’s appeal “has significantly declined compared to cloud-based AI services, which have advanced rapidly in subsequent months.”
Apple’s estimated iPhone shipments total about 220 million units for 2024 and between about 220 million and 225 million for this year, Kuo wrote. That is “below the market consensus of 240 million or more,” he wrote.
Apple did not immediately respond to CNBC’s request for comment.
Amazon said it is halting some of its diversity and inclusion initiatives, joining a growing list of major corporations that have made similar moves in the face of increasing public and legal scrutiny.
In a Dec. 16 internal note to staffers that was obtained by CNBC, Candi Castleberry, Amazon’s VP of inclusive experiences and technology, said the company was in the process of “winding down outdated programs and materials” as part of a broader review of hundreds of initiatives.
“Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture,” Castleberry wrote in the note, which was first reported by Bloomberg.
Castleberry’s memo doesn’t say which programs the company is dropping as a result of its review. The company typically releases annual data on the racial and gender makeup of its workforce, and it also operates Black, LGBTQ+, indigenous and veteran employee resource groups, among others.
In 2020, Amazon set a goal of doubling the number of Black employees in vice president and director roles. It announced the same goal in 2021 and also pledged to hire 30% more Black employees for product manager, engineer and other corporate roles.
Meta on Friday made a similar retreat from its diversity, equity and inclusion initiatives. The social media company said it’s ending its approach of considering qualified candidates from underrepresented groups for open roles and its equity and inclusion training programs. The decision drew backlash from Meta employees, including one staffer who wrote, “If you don’t stand by your principles when things get difficult, they aren’t values. They’re hobbies.”
Amazon, which is the nation’s second-largest private employer behind Walmart, also recently made changes to its “Our Positions” webpage, which lays out the company’s stance on a variety of policy issues. Previously, there were separate sections dedicated to “Equity for Black people,” “Diversity, equity and inclusion” and “LGBTQ+ rights,” according to records from the Internet Archive’s Wayback Machine.
The current webpage has streamlined those sections into a single paragraph. The section says that Amazon believes in creating a diverse and inclusive company and that inequitable treatment of anyone is unacceptable. The Information earlier reported the changes.
Amazon spokesperson Kelly Nantel told CNBC in a statement: “We update this page from time to time to ensure that it reflects updates we’ve made to various programs and positions.”
Read the full memo from Amazon’s Castleberry:
Team,
As we head toward the end of the year, I want to give another update on the work we’ve been doing around representation and inclusion.
As a large, global company that operates in different countries and industries, we serve hundreds of millions of customers from a range of backgrounds and globally diverse communities. To serve them effectively, we need millions of employees and partners that reflect our customers and communities. We strive to be representative of those customers and build a culture that’s inclusive for everyone.
In the last few years we took a new approach, reviewing hundreds of programs across the company, using science to evaluate their effectiveness, impact, and ROI — identifying the ones we believed should continue. Each one of these addresses a specific disparity, and is designed to end when that disparity is eliminated. In parallel, we worked to unify employee groups together under one umbrella, and build programs that are open to all. Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture. You can read more about this on our Together at Amazon page on A to Z.
This approach — where we move away from programs that were separate from our existing processes, and instead integrating our work into existing processes so they become durable — is the evolution to “built in” and “born inclusive,” instead of “bolted on.” As part of this evolution, we’ve been winding down outdated programs and materials, and we’re aiming to complete that by the end of 2024. We also know there will always be individuals or teams who continue to do well-intentioned things that don’t align with our company-wide approach, and we might not always see those right away. But we’ll keep at it.
We’ll continue to share ongoing updates, and appreciate your hard work in driving this progress. We believe this is important work, so we’ll keep investing in programs that help us reflect those audiences, help employees grow, thrive, and connect, and we remain dedicated to delivering inclusive experiences for customers, employees, and communities around the world.
New Tesla Model 3 vehicles on a truck at a logistics drop zone in Seattle, Washington, on Aug. 22, 2024.
M. Scott Brauer | Bloomberg | Getty Images
Tesla is voluntarily recalling about 239,000 of its electric vehicles in the U.S. to fix an issue that can cause its rearview cameras to fail, the company disclosed in filings posted Friday to the National Highway Traffic Safety Administration’s website.
“A rearview camera that does not display an image reduces the driver’s rear view, increasing the risk of a crash,” Tesla wrote in a letter to the regulator. The recall applies to Tesla’s 2024-2025 Model 3 and Model S sedans, and to its 2023-2025 Model X and Model Y SUVs.
The company also said in the acknowledgement letter that it has already “released an over-the-air (OTA) software update, free of charge” that can fix some of the vehicles’ camera issues.
In 2024, Tesla issued 16 recalls in the U.S. that applied to 5.14 million of its EVs, according to NHTSA data. The recall remedies included a mix of over-the-air software updates and parts replacements. More than 40% of last year’s recalls pertained to issues with the newest vehicle in the company’s lineup, the Cybertruck, an angular steel pickup that Tesla began delivering to customers in late 2023.
Regarding the latest recall, the company said it had received 887 warranty claims and dozens of field reports but told the NHTSA that it was not aware of any injurious, fatal or other collisions resulting from the rearview camera failures.
Other customers with vehicles that “experienced a circuit board failure or stress that may lead to a circuit board failure,” which cause the backup camera failures, can have their vehicles’ computers replaced by Tesla, free of charge, the company said.
Tesla did not immediately respond to CNBC’s request for comment.