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
Another unusual aspect of X’s new terms is its “liquidated damages” clause. The terms state that if users request, view or access more than 1 million posts – including replies, videos, images and others – in any 24-hour period they are liable for damages of $15,000.
While most individual users won’t easily approach that threshold, the clause is concerning for some, including digital researchers. They rely on the analysis of larger numbers of public posts from services like X to do their work.
X’s new terms of service are a “disturbing move that the company should reverse,” said Alex Abdo, litigation director for the Knight First Amendment Institute at Columbia University, in an October statement.
“The public relies on journalists and researchers to understand whether and how the platforms are shaping public discourse, affecting our elections, and warping our relationships,” Abdo wrote. “One effect of X Corp.’s new terms of service will be to stifle that research when we need it most.”
Neither Threads nor Bluesky have anything similar to X’s liquidated damages clause.
Meta and X did not respond to requests for comment.
Facebook and Instagram icons are seen displayed on an iPhone.
Jakub Porzycki | Nurphoto | Getty Images
Meta on Wednesday introduced new safety features for teen users, including enhanced direct messaging protections to prevent “exploitative content.”
Teens will now see more information about who they’re chatting with, like when the Instagram account was created and other safety tips, to spot potential scammers. Teens will also be able to block and report accounts in a single action.
“In June alone, they blocked accounts 1 million times and reported another 1 million after seeing a Safety Notice,” the company said in a release.
This policy is part of a broader push by Meta to protect teens and children on its platforms, following mounting scrutiny from policymakers who accused the company of failing to shield young users from sexual exploitation.
Meta said it removed nearly 135,000 Instagram accounts earlier this year that were sexualizing children on the platform. The removed accounts were found to be leaving sexualized comments or requesting sexual images from adult-managed accounts featuring children.
The takedown also included 500,000 Instagram and Facebook accounts that were linked to the original profiles.
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Meta is now automatically placing teen and child-representing accounts into the strictest message and comment settings, which filter out offensive messages and limit contact from unknown accounts.
Users have to be at least 13 to use Instagram, but adults can run accounts representing children who are younger as long as the account bio is clear that the adult manages the account.
The platform was recently accused by several state attorneys general of implementing addictive features across its family of apps that have detrimental effects on children’s mental health.
Meta announced last week it 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.”
Congress has renewed efforts to regulate social media platforms to focus on child safety. The Kids Online Safety Act was reintroduced to Congress in May after stalling in 2024.
The measure would require social media platforms to have a “duty of care” to prevent their products from harming children.
Snapchat was sued by New Mexico in September, alleging the app was creating an environment where “predators can easily target children through sextortion schemes.”
A series of iPhone 16s on display inside the Apple store at Tun Razak Exchange in Kuala Lumpur, Malaysia, on Sept. 20, 2024.
Annice Lyn | Getty Images News | Getty Images
Britain’s competition regulators on Wednesday took aim at the mobile ecosystems of Apple and Google, pushing the two companies to make changes to areas like their app stores.
On Wednesday, the Competition and Markets Authority proposed designating the U.S. tech giants as having a “strategic market status” or SMS, after opening an investigation into the matter in January.
This designation is given to a large company that has “substantial and entrenched market power” and a “position of strategic significance” with respect to a digital activity in the U.K.
The CMA can force firms that are branded as having SMS to change or stop specific behaviors or practices in order to address competition concerns.
Apple and Google both took issue with the CMA’s proposals, effectively saying they would be bad for user security and consumers overall.
What has the CMA taken issue with?
Britain’s regulator focused on investigating Apple and Google’s mobile operating systems, app store and browser. One aspect of the investigation looked at whether there are barriers that may prevent other competitors from offering rival products and services on the U.S. tech giants’ mobile platforms.
Another part of the probe examined whether Apple and Google are using their position in operating systems, app distribution or browsers to favor its own apps and services.
And the final aspect of the investigation studied whether Apple and Google require developers to sign up to “unfair terms and conditions” in order to distribute their apps via the respective app stores.
The CMA on Wednesday said consumers and businesses have raised concerns about different issues across the two companies’ mobile ecosystems. But some of these include “inconsistent and unpredictable app review processes” and “inconsistent app store search rankings” that may favor the tech giants’ own apps.
The British regulator also took aim at the up to 30% commission charged by the firms on some in-app purchases and restrictions on developers telling customers about cheaper ways to pay or to subscribe outside of the app.
As part of Google and Apple’s review process to allow apps on to their app stores, developers raised concerns that the tech companies could have access to commercially sensitive data of their competitors, the CMA said.
Google’s Android operating system commands just over 61% market share in the U.K., while Apple’s iOS has just over a 38%, according to Kantar data. Google runs the Google Play store and Chrome browser, and Apple has its App Store and Safari browser.
What changes does the CMA want?
The CMA has laid out immediate changes that it wants to see, alongside some longer-term steps. The regulator said that it wants Apple to review apps for distribution in a “fair, objective and transparent manner.” This could include remedies such as Apple explaining delays or rejections and creating an avenue for businesses to raise concerns about the process.
Apple could also be made to publish a methodology for how it ranks apps in the App Store. The CMA has laid out similar remedies for Google.
The regulator is looking at how Apple and Google can make it easy for users to be steered by developers outside of an app to pay for services and products, thus avoiding their respective in-app purchase fee.
The CMA is also looking into ways to make it easier for users to transfer data between Apple’s iOS and Google’s Android to make switching easier.
For next year, the CMA said it is still looking at whether to require Apple to allow alternative app stores in iOS and the company’s iPad software. The regulator also said it is exploring whether to force Apple to allow users to download apps directly from a developer’s own website, a practice known as “sideloading.”
Apple and Google react
Apple said in a statement that the proposals from the U.K. “would undermine the privacy and security protections that our users have come to expect, hamper our ability to innovate, and force us to give away our technology for free to foreign competitors,”
“We will continue to engage with the regulator to make sure they fully understand these risks.”
Google’s Senior Director of Competition Oliver Bethell noted that both the Google Chrome browser and Android’s operating system are built on open-source code.
“These offerings enable great choice, security and innovation for users. That’s why today’s announcement is both disappointing and unwarranted,” Bethell said.
The Google executive highlighted ways in which Android has helped British developers and the economy.
“It is therefore crucial that any new regulation is evidence-based, proportionate and does not become a roadblock to growth in the U.K We remain committed to constructive engagement with the CMA for the duration of this process,” Bethell said.
U.S. tech giants face European scrutiny
Apple and Google’s regulatory problems on the continent of Europe continue to deepen.
Apple has been forced to make a number of changes to the way it operates in the EU this year. These include allowing developers to tell their users about cheaper alternatives and bypass Apple’s in-app payment system.
Apple has long argued that forced regulator-led changes to its operations could lead to privacy and security issues for users and confusing business terms for developers
In March, Google parent Alphabet meanwhile was accused by the EU of failing to comply with the DMA. The European Commission, the EU’s executive arm, said Google is treating its own search services more favorably than those of rivals. The Commission added that Google’s app store is preventing developers from steering consumer to other channels for better offers.
The search giant is also looking to fight a 4.1 billion euro fine that has stemmed from an antitrust case dating back to 2018.
The Texas Instruments headquarters in Dallas, Texas, on Jan. 21, 2024.
N. Johnson | Bloomberg | Getty Images
Texas Instrumentsreported second-quarter results on Tuesday that beat analysts’ expectations for revenue and earnings. But the stock fell in extended trading due to a third-quarter forecast that missed estimates.
Here’s how the chipmaker did versus LSEG consensus estimates:
Earnings per share: $1.41 vs. $1.35 expected
Revenue: $4.45 billion vs. $4.36 billion expected
Texas Instruments said it expects current-quarter earnings between $1.36 and $1.60 per share, while analysts were looking for $1.50 per share. The company forecast revenue of $4.45 billion to $4.8 billion, for a midpoint of $4.625 billion. Analysts were expecting revenue of $4.59 billion.
Revenue increased 16% in the second quarter from $3.82 billion in the same period a year earlier. Sales in the company’s analog chip business, its largest, rose 18% to $3.5 billion, surpassing the StreetAccount estimate of $3.39 billion for the segment.
Net income rose 15% to $1.3 billion, or $1.41 per share, from $1.13 billion, or $1.22 per share, a year ago.
Texas Instruments is a key supplier of legacy semiconductors for automotive and industrial uses.
As of Tuesday’s close, Texas Instruments shares were up 15% for the year on broader market optimism for chips. In June, the company said it would spend $60 billion to expand chipmaking factories in Texas and Utah, a move that was praised by the Trump administration in its push to bring more technology manufacturing to the U.S.