3 - 5 minute read
On April 19, Tesla and Twitter CEO Elon Musk threatened Microsoft with a lawsuit, alleging that the tech giant had “illegally” trained its artificial intelligence (AI) on Twitter data. Musk’s tweet was in response to news that Microsoft would no longer support Twitter on its online social advertising tools Smart Campaigns and Multi-platform.
Twitter’s API fees have consistently increased, with some cases priced upwards of $200,000 per month. This has affected over 17,500 academic papers that have been based on Twitter data since 2020. Meanwhile, Microsoft is reportedly developing its own AI chips to power ChatGPT to deal with rising development costs for in-house and OpenAI projects. As one of the world’s largest tech companies with a valuation of $2.15 trillion, Microsoft’s decision to scrap Twitter support will impact its customers’ access to Twitter accounts through its tools.
NEWS: Microsoft drops Twitter from its advertising platform as they refuse to pay Twitter’s API fees. pic.twitter.com/dY6YBIxjo5— T(w)itter Daily News (@TitterDaily) April 19, 2023
Musk’s allegation that Microsoft “trained illegally using Twitter data,” is a serious accusation that alleges the tech giant’s use of Twitter data to train AI-powered applications without common consent or authorization. Musk’s comment that “ripping off the Twitter database, demonetizing it (removing ads), and then selling our data to others isn’t a winning solution” also raises concerns over privacy and data integrity.
Microsoft’s response to Musk’s comments was limited to a no comment statement. However, the company’s decision to discontinue support for Twitter on its online social advertising tools, Smart Campaigns and Multi-platform, could be due to Twitter API fees consistently increasing, which is affecting Microsoft’s bottom line.
While the impact of Musk’s threatened lawsuit on Microsoft’s stock remains unknown, traders should be aware of the potential risks of this accusation regarding privacy and data integrity. The decision to discontinue supporting Twitter on online social advertising tools could impact Microsoft’s customer engagement levels negatively. Additionally, the rising Twitter API fees could lead to reduced data access for Microsoft’s customers, ultimately decreasing the profitability of the company. Traders should monitor Microsoft’s next move as it focuses on developing its own AI chips to power ChatGPT.
The Bottom Line
Tesla and Twitter CEO Elon Musk has threatened Microsoft with a lawsuit alleging that the company “illegally” trained its AI on Twitter data. Musk’s comments raise concerns over privacy and data integrity. While Microsoft declined to comment on Musk’s comments and its decision to scrap Twitter ads support, traders should monitor Microsoft’s next move as it develops its own AI chips to power ChatGPT while facing rising Twitter API fees. Ultimately, Microsoft’s decision to discontinue supporting Twitter on its online social advertising tools could impact its profitability and customer engagement levels negatively.