What Does Twitter ‘Rate Limit Exceeded’ Mean for Users?

Twitter corporate headquarters building is seen in downtown San Francisco, California, US November 21, 2022. (Reuters)
Twitter corporate headquarters building is seen in downtown San Francisco, California, US November 21, 2022. (Reuters)
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What Does Twitter ‘Rate Limit Exceeded’ Mean for Users?

Twitter corporate headquarters building is seen in downtown San Francisco, California, US November 21, 2022. (Reuters)
Twitter corporate headquarters building is seen in downtown San Francisco, California, US November 21, 2022. (Reuters)

Elon Musk's Twitter has put a temporary limit on the number of tweets that users can see each day, a move that has sparked some backlash and could undermine the social network's efforts to attract advertisers.

The limit, imposed to "address extreme levels of data scraping and system manipulation", is the latest change by Twitter, which was last year acquired by Musk for $44 billion.

What does the latest change mean and what are the alternatives to Twitter?

How do the changes impact users?

Users cannot view tweets without logging in to the platform. Verified accounts can now read 6,000 posts per day, unverified accounts 600 posts and new un-verified accounts 300 posts. After that, users will get a message that says, "rate limit exceeded".

Musk has said that limit will "soon" increase to 10,000 for verified, 1,000 for unverified and 500 for new unverified.

He has been pushing to make Twitter's overhauled verified service more attractive. Musk made Twitter verified - special badges that were earlier given to notable profiles - a paid subscription and introduced tiers like gray, blue and golden badges.

Why did Musk put the limit?

Musk said the limits would help tackle scraping vast amounts of data from Twitter by almost everyone - from AI companies and startups to tech behemoths.

"It is rather galling to have to bring large numbers of servers online on an emergency basis just to facilitate some AI startup's outrageous valuation," he said in a tweet.

The technology behind generative AI tools such as ChatGPT is trained on massive amounts of data taken from the internet that helps produce everything from poems to pictures.

What are users saying?

Several Twitter users complained, with "#TwitterDown" and "RIP Twitter" trending on the social network website over the past couple of days.

The limits especially impact accounts run by informational agencies, journalists and monitoring services as they rely on reviewing thousands of tweets every day.

The National Weather Service said it may be unable to see tweeted reports of severe weather and associated damage, and asked subscribers to use its office telephone numbers instead.

What are the alternatives?

Twitter-like platforms like Bluesky and Mastodon are the main alternatives. They saw a surge in users and activity soon after Musk announced the limits.

Bluesky, launched by Twitter co-founder Jack Dorsey and now in the beta mode, said it saw "record high traffic" on Saturday and that it was temporarily pausing new sign-ups.

Mastodon also saw its active user base swell by 110,000 on that day, its creator and CEO Eugen Rochko said.



Nvidia Overtakes Apple as World’s Most Valuable Company

 A man walks past the Nvidia logo at the company's AI Summit in Mumbai, India, October 24, 2024. (Reuters)
A man walks past the Nvidia logo at the company's AI Summit in Mumbai, India, October 24, 2024. (Reuters)
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Nvidia Overtakes Apple as World’s Most Valuable Company

 A man walks past the Nvidia logo at the company's AI Summit in Mumbai, India, October 24, 2024. (Reuters)
A man walks past the Nvidia logo at the company's AI Summit in Mumbai, India, October 24, 2024. (Reuters)

Nvidia dethroned Apple as the world's most valuable company on Friday, following a record-setting rally in the stock powered by an insatiable demand for its new supercomputing AI chips.

Nvidia's stock market value briefly touched $3.53 trillion, while that of Apple was $3.52 trillion, according to data from LSEG.

In June, Nvidia briefly became the world's most valuable company, before it was overtaken by Microsoft and Apple. The tech trio's market capitalizations have been neck-and-neck for several months. Microsoft's market value stood at $3.20 trillion.

Nvidia's stock has risen about 18% so far in October, with a string of gains coming after OpenAI, the company behind ChatGPT, announced a funding round of $6.6 billion. Nvidia provides chips used to train so-called foundation models such as OpenAI's GPT-4.

"More companies are now embracing artificial intelligence in their everyday tasks and demand remains strong for Nvidia chips," said Russ Mould, investment director at AJ Bell.

"It is certainly in a sweet spot and so long as we avoid a big economic downturn in the United States, there is a feeling that companies will continue to invest heavily in AI capabilities, creating a healthy tailwind for Nvidia."

Nvidia's shares hit a record high on Tuesday, building on a rally from last week when TSMC, the world's largest contract chipmaker, posted a forecast-beating 54% jump in quarterly profit driven by soaring demand for chips used in AI.

The next big test will be when Nvidia reports third-quarter results in November. Nvidia in August forecast third-quarter revenue of $32.5 billion, plus or minus 2%, compared with the current average analyst expectation of $32.90 billion, according to data compiled by LSEG.

Morgan Stanley analyst Joseph Moore said in a note dated Oct. 10 that he remains "very bullish" about the company longer term, but the recent rally "raises the bar for earnings somewhat".

After a meeting with Nvidia's CEO Jensen Huang, Moore noted the ramp up in production of its next-generation Blackwell chips appeared to be "quite strong" and are booked out for 12 months. The stock came under pressure in August after Nvidia confirmed reports that the production of Blackwell chips was delayed until the fourth quarter.

Shares of Nvidia, Apple and Microsoft have an outsized influence on the richly valued technology sector as well as the broader US stock market, with the trio accounting for about a fifth of the S&P 500 index's weightage.

Frenzy around the prospects of AI, expectations that the US Federal Reserve will considerably bring down interest rates, and most recently, an upbeat start to the earnings season, have pushed the benchmark S&P 500 to an all-time high last week.

Nvidia's massive gains have helped boost the stock's appeal for option traders and the company's options are among the most traded on any given day in recent months, according to data from options analytics provider Trade Alert.

The stock has surged nearly 190% so far this year as a boom in generative AI prompted the company to issue a series of blowout forecasts.

"The question is whether the revenue stream will last for a long time and will be driven by the emotion of investors rather than by any ability to prove or disprove the thesis that AI is overdone," said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.

"I think Nvidia knows that near term, their numbers are likely to be quite remarkable."