Elon Musk Wants to Build a Digital Town Square. But His Debut for DeSantis Had a Tech Failure.

FILE PHOTO: Tesla CEO Elon Musk and his security detail depart the company’s local office in Washington, US January 27, 2023.  REUTERS/Jonathan Ernst
FILE PHOTO: Tesla CEO Elon Musk and his security detail depart the company’s local office in Washington, US January 27, 2023. REUTERS/Jonathan Ernst
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Elon Musk Wants to Build a Digital Town Square. But His Debut for DeSantis Had a Tech Failure.

FILE PHOTO: Tesla CEO Elon Musk and his security detail depart the company’s local office in Washington, US January 27, 2023.  REUTERS/Jonathan Ernst
FILE PHOTO: Tesla CEO Elon Musk and his security detail depart the company’s local office in Washington, US January 27, 2023. REUTERS/Jonathan Ernst

Elon Musk wants to turn Twitter into a “digital town square,” but his much-publicized Twitter Spaces kickoff event, with Florida Gov. Ron DeSantis announcing his run for president, struggled with technical glitches and a near half-hour delay Tuesday.

The billionaire Twitter owner said the problems were due to “straining” servers because so many people were trying to listen to the audio-only event. But even at their highest, the number of listeners listed topped out at around 420,000, far from the millions of viewers that televised presidential announcements attract, The Associated Press.

“There’s so many people,” said host David Sacks amid the disruptions. “We’ve got so many people here that we are kind of melting the servers, which is a good sign.”

After it concluded without further disruptions, Musk, DeSantis and Sacks played off the event as a success, with Sacks quipping “it's not how you start, it's how you finish — and we finished really strong."

Musk a day earlier dubbed the event a historic first for Twitter, saying it would be “the first time something like this is happening on social media.” The webcast was scheduled to start at 6 p.m. ET but nearly 30 minutes passed with users getting kicked off, hearing microphone feedback and enduring other technical problems before it finally began. The audience remained under 500,000.

DeSantis opponents had a field day with the delayed announcement.

"Glitchy. Tech issues. Uncomfortable silences. A complete failure to launch. And that’s just the candidate!” said Steven Cheung, a spokesperson for former President and current candidate Donald Trump.

Rep. Alexandria Ocasio-Cortez, a Democrat from New York, tweeted, “We had more people join when I played Among Us,” referencing the popular video game.

Twitter has suffered a host of technical issues since Musk took over and fired or laid off roughly 80% of its staff — including engineers tasked with keeping the site running. A day before the DeSantis event, speaking at The Wall Street Journal’s CEO Council Summit in London, Musk expressed confidence about Twitter's future and said he is “going to start adding people to the company” but gave no further details.

Musk bought Twitter last fall for $44 billion. Since then, he has upended the platform's verification system, loosened its content moderation policies in line with his views as a “free speech absolutist,” spread misinformation and engaged with far-right figures, all the while working to attract jittery advertisers back to the platform to turn it profitable. His grand vision, he has said repeatedly, is to eventually turn Twitter into an “ everything app ” for everyone — a digital town square where people can hear from world leaders and politicians without the need for traditional media as a go-between.

But he seems to mainly be courting conservatives and Republicans lately, referring to Democrats and liberals as infected by the “woke mind virus” and reinstating extremist accounts that were banned by Twitter's previous administration.

Wednesday's campaign launch event with DeSantis continued the trend — though it remains to be seen whether the platform can become a go-to destination for mainstream politicians when it continues to show evidence of instability. For instance, the word “DeSaster” was trending on Twitter Wednesday evening as users mocked the botched campaign launch.

In the world of traditional media and politics, a glitchy half-hour delay and an audience in the hundreds of thousands rather than millions, Wednesday's Twitter Spaces event might look like a failure. But in Silicon Valley, failure is often spun as positive, even essential in developing new products and improving existing ones. Twitter Spaces — which Twitter launched in 2020 to compete with the then-popular audio chat site Clubhouse — is generally not used for audiences in the hundreds of thousands, so in some ways it was not a surprise that the event was marred with technical problems.

“It's much worse for DeSantis than it is for Musk,” said Jo-Ellen Pozner, a business professor at Santa Clara University, noting that just a month ago Musk's SpaceX launched a rocket that exploded minutes after its launch from Texas. After the explosion, Musk called it “an exciting test launch of Starship! Learned a lot for next test launch in a few months" in a tweet.

“It is clearly a difficult situation for DeSantis, who wants to project competence, who wants to forestall criticism,” she said. “Musk has an easier out by just saying that ‘this was the first time we tried it, it didn’t work out perfectly, but next time we’ll do much better,’ in the classic Silicon Valley approach to failing fast and learning more.”

Pozner said it remains an “open question” how Twitter is going to be valued as a broad digital platform down the line.

“I think will depend on, you know, how he and the top management react to this and how they spin it,” she said.

After DeSantis logged off, Musk and Sacks extended an open invitation to any other presidential candidate who wants to do a Twitter Spaces event. Whether or not they get any takers could signal what the future holds for Twitter as a “public square."



Pentagon Reaches Agreements with Top AI Companies, but Not Anthropic

FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo
FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo
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Pentagon Reaches Agreements with Top AI Companies, but Not Anthropic

FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo
FILE PHOTO: Aerial view of the United States military headquarters, the Pentagon, September 28, 2008. REUTERS/Jason Reed/File Photo

The Pentagon said on Friday it had reached agreements with seven AI companies to deploy their advanced capabilities on the Defense Department's classified networks as it seeks to broaden the range of AI providers working across the military.

The statement notably excludes Anthropic, which has been in dispute with the Pentagon over guardrails for the use of its artificial intelligence tools by the military, Reuters reported.

The Pentagon labeled the AI startup, which is widely used across the Department of Defense, a supply-chain risk earlier this year, barring its use by the Pentagon and its contractors.

SpaceX, OpenAI, Google, NVIDIA, Reflection, Microsoft and Amazon Web Services, several of which already work with the Pentagon, will be integrated into its Impact Levels 6 and 7 network environments giving more of the military access to their products, the Pentagon said in a statement.

By expanding the AI services offered to troops, who use it for planning, logistics, targeting and a bevy of other reasons to streamline huge operations and perform more quickly, the Pentagon said in its statement it will avoid "vendor lock", a likely nod to its overdependence on Anthropic. Pentagon staffers, former officials and IT contractors who work closely with the US military have told Reuters they were reluctant to give upAnthropic’s AI tools, which they view as superior to alternatives, despite orders to remove them over the next six months.

AI has become increasingly important for the US military. The Pentagon's main AI platform GenAI.mil has been used by over 1.3 million Defense Department personnel, the agency noted in its release, after five months of operation.

Google, which is already used within the Pentagon, has signed a deal enabling the Department of Defense to use its artificial intelligence models for classified work, a source told Reuters earlier this week.

ANTHROPIC STILL A 'RISK'

Defense Department Chief Technology Officer Emil Michael on Friday told CNBC that Anthropic remained a supply-chain risk, but that Mythos, the company’s artificial intelligence model with advanced cyber capabilities that created a stir among US officials and corporate America over its ability to supercharge hackers, was a “separate national security moment.”

While numerous companies and public and private entities have gained access to a Mythos preview product to help secure their IT infrastructure against future cyberattacks, it is not clear if the Pentagon is part of that program. US President Donald Trump said last week that Anthropic was "shaping up" in the eyes of his administration, opening the door for the AI company to reverse its blacklisting at the Pentagon.

Still, the falling out reinforced the need to diversify the supply of AI tools for the military, opening new opportunities for small defense industry artificial intelligence startups.


Apple Shares Rise on Strong Quarterly Sales in Run-up to CEO Change

The Apple logo is seen at an Apple store in the Barton Creek Square mall on April 30, 2026 in Austin, Texas. (Getty Images via AFP)
The Apple logo is seen at an Apple store in the Barton Creek Square mall on April 30, 2026 in Austin, Texas. (Getty Images via AFP)
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Apple Shares Rise on Strong Quarterly Sales in Run-up to CEO Change

The Apple logo is seen at an Apple store in the Barton Creek Square mall on April 30, 2026 in Austin, Texas. (Getty Images via AFP)
The Apple logo is seen at an Apple store in the Barton Creek Square mall on April 30, 2026 in Austin, Texas. (Getty Images via AFP)

Apple shares jumped 3% in premarket trading ‌on Friday after the iPhone maker posted its strongest quarterly sales growth in more than four years, a show of momentum as it prepares to hand over the reins to a new CEO.

Its latest iPhone 17 Pro series and the newly launched low-cost MacBook Neo laptop are both drawing buyers at a time of low overall demand in the consumer electronics industry due to price hikes forced by the memory chip shortage.

Even though Apple's margins for the January-March quarter and its fiscal third-quarter forecast were above Wall Street estimates, outgoing CEO Tim Cook warned that ‌higher memory costs would ‌increasingly weigh on the business from June.

Limited ‌supply ⁠of the advanced ⁠processors for iPhone have already hampered Apple's ability to capitalize on strong demand. The chips are made by Taiwan's TSMC, the leading producer of AI processors.

Analysts say Apple's clout with long-time suppliers could position it better than rivals in securing memory chips but it might have to raise prices later this year.

"The key question will be deciding the perfect balance strategically ⁠between increasing prices and maintaining profitability or focusing on ‌gaining share by not increasing prices," said ‌Nabila Popal, a senior research director at IDC.

"I think Apple will increase ‌prices of the Pro and ProMax in upcoming fall launch, however ‌even if they don't, with the super high-end iPhone fold coming up - which we expect to be well over $2,200– will help balance some of the increased costs."

RESULTS BODE WELL FOR NEW CEO

The results, including a forecast of ‌14% to 17% sales growth for the current quarter that was above estimates, bode well for the company ⁠before hardware ⁠chief John Ternus takes over as CEO in September. Cook will stay on as executive chairman.

The change comes as Apple looks to close the gap with rivals Microsoft and Alphabet, which have moved faster to roll out AI features and infrastructure.

Investors are expected to get more details about its AI plans at it annual software developer conference in June.

Some analysts said Apple's decision to no longer aim to bring its net cash - cash minus debt - to a net neutral position may help it manage its financial position better in the AI era.

The move gives it greater balance-sheet flexibility, allowing it to absorb higher costs, support share repurchases and deploy capital more strategically, TD Cowen analysts said.


Meta Chief Doubles Down on AI Spending

FILE PHOTO: Meta Platforms CEO Mark Zuckerberg arrives outside court to take the stand at trial in a key test case accusing Meta and Google's YouTube of harming kids' mental health through addictive platforms, in Los Angeles, California, US, February 18, 2026.  REUTERS/Mike Blake
FILE PHOTO: Meta Platforms CEO Mark Zuckerberg arrives outside court to take the stand at trial in a key test case accusing Meta and Google's YouTube of harming kids' mental health through addictive platforms, in Los Angeles, California, US, February 18, 2026. REUTERS/Mike Blake
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Meta Chief Doubles Down on AI Spending

FILE PHOTO: Meta Platforms CEO Mark Zuckerberg arrives outside court to take the stand at trial in a key test case accusing Meta and Google's YouTube of harming kids' mental health through addictive platforms, in Los Angeles, California, US, February 18, 2026.  REUTERS/Mike Blake
FILE PHOTO: Meta Platforms CEO Mark Zuckerberg arrives outside court to take the stand at trial in a key test case accusing Meta and Google's YouTube of harming kids' mental health through addictive platforms, in Los Angeles, California, US, February 18, 2026. REUTERS/Mike Blake

Meta chief Mark Zuckerberg on Wednesday defended massive spending on artificial intelligence that dragged down shares despite strong earnings boosted by the technology.

The social networking colossus raised its capital expenditures for this year to a range of $125 billion to $145 billion without laying out exactly how that investment would translate into profit.

"The way to think about the investment is that we're making a bet (on) the individual things that people care about, and that people are going to be more important in the future," Meta chief Mark Zuckerberg said during an earnings call, as analysts pressed him about the company's heavy spending on AI.

He gave the example of a hot trend in "agentic" AI in which digital assistants handle computer tasks independently at the behest of people.

"There are a lot of agents out there that people are building for different things, and there aren't that many that I would want to give to my mother," Zuckerberg said.

"I think getting to that quality bar is something that I care about more than hitting a specific week for launching (a new product) or something like that."

Zuckerberg spotlighted a new Muse Spark AI model built by Meta's nascent "Superintelligence Lab", saying its technology will be put to work in Meta's offerings such as smartglasses and its advertising system.

"We are trying novel things," AFP quoted Zuckerberg as saying.

The AI investment from the company that owns Instagram and Facebook is not directly tied to a revenue stream as with Amazon, Microsoft and Google, which sell their AI-powered cloud services to clients worldwide.

Meta sent tremors on Wall Street by announcing in its earnings release that expenses at the tech giant notched up to $33.4 billion as it chases "superintelligence" through major infrastructure buys, and went on a hiring spree for top AI talent.

Shares dropped more than 6 percent even though the company topped forecasts with a profit of $26.8 billion on revenue of $56.3 billion in the quarter.

- Headwinds and scrutiny -

Adding to investor unease about Meta, chief financial officer Susan Li told analysts Meta continues to monitor legal and regulatory "headwinds" in the US and Europe, including social media addiction lawsuits.

"We continue to see scrutiny on youth related issues and have additional trials scheduled for this year in the US, which may ultimately result in a material loss," Li warned.

A Los Angeles jury in March found Meta and YouTube liable for harming a young woman because of an addictive design of their social media platforms, ordering the companies to pay millions of dollars in damages.

The verdict hands plaintiffs in more than a thousand similar pending cases significant leverage -- and signals to the tech industry that juries are prepared to hold social media companies accountable for the mental health toll of their design choices.