Threads beats X in daily active users on mobile as Meta’s established ad stack makes Threads a safer long-term bet for community-driven social ads.

AI deepfakes are sparking a global crackdown after Grok’s explicit content scandal triggered UK probes and stricter safeguards--raising governance stakes for AI tools.

Deepfake scandal clouds enterprise rollout, raising flags on brand safety and buyer trust.

Elon Musk’s X has lost another key figure in its advertising business, with ad chief John Nitti announcing his departure last week after joining just ten months ago, per the Financial Times. Another key loss signals that X’s ad strategy remains turbulent—and until its AI-powered ad focus proves valuable, ad investment should be executed with an air of caution.

The news: Elon Musk tried to enlist Meta CEO Mark Zuckerberg in a $97.4 billion takeover of OpenAI in February, per court filings in OpenAI’s ongoing countersuit against Musk. The failed bid was Musk’s response to OpenAI’s potential shift to a for-profit model, which he claims broke its founding mission. Our take: The initial phase of the AI boom, defined by research breakthroughs and experimentation, is giving way to a more aggressive era of market consolidation, legal entanglements, and power politics. Litigation is emerging as the last resort when innovation stalls or acquisition paths close—an indicator that the AI industry could be entering a defensive phase where court battles stand in for competitive breakthroughs.

Elon Musk plans to sell paid placements within Grok’s AI-generated answers, marking his first major advertiser pitch since Linda Yaccarino’s departure. Grok, X’s in-house AI assistant built by xAI, will integrate ads directly into responses, offering brands high-intent, context-driven targeting. The move comes as X’s global ad revenues, projected at $2.26 billion in 2025, remain roughly half of pre-Musk levels. Musk says Grok will eventually automate the full ad-buying process, from creative grading to personalization, aiming to improve efficiency and performance. With user growth declining in every major region, the strategy hinges on whether brands trust Musk’s AI-led vision enough to re-engage.

The news: Forecasters are mixed on the future of Elon Musk-owned platform X after CEO Linda Yaccarino, whose experience as an advertising executive at NBCUniversal helped X reclaim some ad revenues, stepped down. But things aren’t all gloom and doom: We forecast that X’s ad revenues will increase by 25% YoY in 2025. Our take: While X’s ad revenues will likely grow in the short term, the shift toward AI could alleviate long-term struggles resulting from a turbulent few years for the platform—and even if some advertisers shift away, many will feel pressured to stay or face consequences.

The news: Linda Yaccarino, CEO of Elon Musk’s X, left the company Wednesday as the social platform faced a major AI controversy—raising questions about the platform’s future and how advertisers will navigate the shift. Yaccarino, who became CEO of X in 2023, announced her decision to leave on Wednesday. Our take: X’s future is increasingly rocky. Yaccarino’s departure reaffirms many advertisers’ fears that the platform is far from stable, and the Grok mishap indicates that it isn’t yet brand safe—meaning major advertisers could retreat once again.

XChat introduces file sharing, disappearing messages, and calls—but user skepticism over privacy and vague “Bitcoin-style” encryption may hinder adoption.

On today’s podcast episode, we discuss how much the merger with xAI can move the needle for X, if the social platform can recoup the kinds of ad dollars it was making before Elon Musk bought them, and where X users have migrated to (if anywhere). Join Senior Director of Podcasts and host Marcus Johnson, and Analysts Marisa Jones and Emmy Liederman. Listen everywhere and watch on YouTube and Spotify.

Copilot, Edge, and Azure upgrades show Microsoft is building an AI pipeline to control development, infrastructure, and productivity.

X’s ad business is beginning to recover. But the return to growth is complicated, and there’s still a long road ahead for X’s ad revenues to reach pre-Elon Musk levels.

While Meta says the goal is political balance and nuanced conversations, is it chasing social ideology over fixing algorithmic bias?

xAI’s takeover of X gives it AI training data, compute power, and a ready-made audience—offering a path to revive X’s ad business and investor confidence.

X poised for ad sales growth for the first time under Musk: While we forecast sales being up 17.5% this year, the platform still has a long way to go.

Rapid growth and enterprise deals position OpenAI as an AI giant, but as expectations rise, the real test will be proving long-term financial viability.

Elon Musk’s takeover bid highlights OpenAI’s AI leadership but also fuels debate over its nonprofit roots, skyrocketing valuation, and long-term independence.

By scrapping Biden’s AI order, Trump signals a hands-off approach, fueling AI competition but risking consumer privacy and security.

Automating civil service tasks could save billions, but concerns over job losses, transparency, and AI reliability may dampen enthusiasm.

AI fueled election confusion: Social platforms struggled to remove deepfakes and AI-driven misinformation during a contentious election year, but investment in moderation may dwindle now