In a surprising move that has left users perplexed, Twitter has imposed restrictions on the number of tweets its users can access. Elon Musk, renowned entrepreneur and Twitter user, announced that unverified accounts are limited to 1,000 tweets per day, while verified users can view up to 10,000.
Elon Musk’s Unconventional Strategy: A Battle with AI Companies
This restriction has left advertising executives bewildered, as it defies conventional social media practices. However, Elon Musk has a more significant game in mind – a battle against artificial intelligence (AI) companies.
The Business of Twitter: Advertising Revenue
Understanding how Twitter generates revenue is crucial. The platform relies heavily on advertising, similar to Meta and Google. Users encounter ads during their time on Twitter, and the more time they spend, the more ads they see. It’s a simple equation that drives the business.
Surprisingly, Elon Musk has been vocal about his distaste for advertising, with Tesla famously refraining from any advertisement campaigns. In 2019, he tweeted, “I hate advertising.” However, his recent acquisition of Twitter, a platform heavily dependent on advertising, suggests a shift in his perspective.
Seeking Alternative Revenue Streams: The Battle for Control
Elon Musk’s motivation to explore different revenue streams extends beyond business interests. He believes that advertisers possess excessive power over social media platforms when it comes to content moderation. Advertisers have the ability to withdraw their support from platforms that fail to align with their values, impacting the platform’s revenue and, consequently, its commitment to “free speech.”
Musk has acknowledged that many advertisers returned to Twitter after his takeover, but he has a bigger plan to make the platform profitable. He aims to monetize the vast amount of data that Twitter possesses.
Data as a Valuable Resource: The AI Conundrum
Twitter, along with platforms like Reddit, harbors a trove of real human conversations, providing a valuable resource for AI companies. These companies leverage the data to train large language models (LLMs) and develop more human-like responses to queries.
However, Twitter and Reddit are now seeking compensation for the use of their data by AI companies. Elon Musk has accused Microsoft of “ripping off the Twitter database” and exploiting their data without proper compensation.
To protect Twitter’s data from being utilized by LLMs, Musk has implemented usage restrictions, hoping to prompt negotiations with AI companies and secure payment for the content they extract.
Promoting Twitter Blue: A Quest for User Payments
Elon Musk’s desire for Twitter users to pay for the platform’s services is evident in his promotion of Twitter Blue. The subscription-based service offers benefits such as verification badges and enhanced features. However, user adoption of Twitter Blue has fallen short of his expectations.
Restricting tweet access may serve as a new tactic to encourage users to pay a monthly fee for unlimited tweet viewing.
Implications for Advertisers and Competitors
While Elon Musk’s restrictions on tweets may align with his goals, they pose challenges for advertisers. The limitations have been deemed “remarkably bad” for both users and advertisers who are already grappling with the turbulence within Twitter.
Additionally, Meta’s founder, Mark Zuckerberg, reportedly plans to launch a Twitter clone called Threads, which
