The Year of Social Media Soul-Searching: Twitter Dies, X and Threads Are Born and AI Gets Personal

The new logo of Twitter is seen in this illustration taken, July 24, 2023. (Reuters)
The new logo of Twitter is seen in this illustration taken, July 24, 2023. (Reuters)
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The Year of Social Media Soul-Searching: Twitter Dies, X and Threads Are Born and AI Gets Personal

The new logo of Twitter is seen in this illustration taken, July 24, 2023. (Reuters)
The new logo of Twitter is seen in this illustration taken, July 24, 2023. (Reuters)

We lost Twitter and got X. We tried out Bluesky and Mastodon (well, some of us did). We fretted about AI bots and teen mental health. We cocooned in private chats and scrolled endlessly as we did in years past. For social media users, 2023 was a year of beginnings and endings, with some soul-searching in between.

Here's a look back some of the biggest stories in social media in 2023 — and what to watch for next year:

GOODBYE TWITTER A little more than a year ago, Elon Musk walked into Twitter ’s San Francisco headquarters, fired its CEO and other top executives and began transforming the social media platform into what’s now known as X.

Musk revealed the X logo in July. It quickly replaced Twitter's name and its whimsical blue bird icon, online and on the company's San Francisco headquarters.

"And soon we shall bid adieu to the twitter brand and, gradually, all the birds," Musk posted on the site.

Because of its public nature and because it attracted public figures, journalists and other high-profile users, Twitter always had an outsized influence on popular culture — but that influence seems to be waning.

"It had a lot of problems even before Musk took it over, but it was beloved brand with a clear role in the social media landscape," said Jasmine Enberg, a social media analyst at Insider Intelligence. "There are still moments of Twitter magic on the platform, like when journalists took the platform to post real-time updates about the OpenAI drama, and the smaller communities on the platform remain important to many users. But the Twitter of the past 17 years is largely gone, and X’s reason for existence is murky."

Since Musk's takeover, X has been bombarded by allegations of misinformation and racism, endured significant advertising losses and suffered declines in usage. It didn't help when Musk went on an expletive-ridden rant in an on-stage interview about companies that had halted spending on X. Musk asserted that advertisers that pulled out were engaging in "blackmail" and, using a profanity, essentially told them to get lost.

Continuing the trend of welcoming back users who had been banned by the former Twitter for hate speech or spreading misinformation, in December, Musk restored the X account of conspiracy theorist Alex Jones, pointing to an unscientific poll he posted to his followers that came out in favor of the Infowars host who repeatedly called the 2012 Sandy Hook school shooting a hoax.

HELLO X. AND THREADS. AND BLUESKY Musk's ambitions for X include transforming the platform into an "everything app" — like China's WeChat, for instance. The problem? It's not clear if US and Western audiences are keen on the idea. And Musk himself has been pretty vague on the specifics.

While X contends with an identity crisis, some users began looking for a replacement. Mastodon was one contender, along with Bluesky, which actually grew out of Twitter — a pet project of former CEO Jack Dorsey, who still sits on its board of directors.

When tens of thousands of people, many of them fed-up Twitter users, began signing up for the (still) invite-only Bluesky in the spring, the app had less than 10 people working on it, said CEO Jay Graber recently.

This meant "scrambling to keep everything working, keeping people online, scrambling to add features that we had on the roadmap," she said. For weeks, the work was simply "scaling" — ensuring that the systems could handle the influx.

"We had one person on the app for a while, which was very funny, and there were memes about Paul versus all of Twitter's engineers," she recalled. "I don't think we hired a second app developer until after the crazy growth spurt."

Seeing an opportunity to lure in disgruntled Twitter users, Facebook parent Meta launched its own rival, Threads, in July. It soared to popularity as tens of millions began signing up — though keeping people on has been a bit of a challenge. Then, in December, Meta CEO Mark Zuckerberg announced in a surprise move that the company was testing interoperability — the idea championed by Mastodon, Bluesky and other decentralized social networks that people should be able to use their accounts on different platforms — kind of like your email address or phone number.

"Starting a test where posts from Threads accounts will be available on Mastodon and other services that use the ActivityPub protocol," Zuckerberg posted on Threads in December. "Making Threads interoperable will give people more choice over how they interact and it will help content reach more people. I’m pretty optimistic about this."

MENTAL HEALTH WORRIES Social media's impact on children's mental health hurtled toward a reckoning this year, with the US surgeon general warning in May that there is not enough evidence to show that social media is safe for children and teens — and calling on tech companies, parents and caregivers to take "immediate action to protect kids now."

"We’re asking parents to manage a technology that’s rapidly evolving that fundamentally changes how their kids think about themselves, how they build friendships, how they experience the world — and technology, by the way, that prior generations never had to manage," Dr. Vivek Murthy told The Associated Press. "And we’re putting all of that on the shoulders of parents, which is just simply not fair."

In October, dozens of US states sued Meta for harming young people and contributing to the youth mental health crisis by knowingly and deliberately designing features on Instagram and Facebook that addict children to its platforms.

In November, Arturo Béjar, a former engineering director at Meta, testified before a Senate subcommittee about social media and the teen mental health crisis, hoping to shed light on how Meta executives, including Zuckerberg, knew about the harms Instagram was causing but chose not to make meaningful changes to address them.

The testimony came amid a bipartisan push in Congress to adopt regulations aimed at protecting children online. In December, the Federal Trade Commission proposed sweeping changes to a decades-old law that regulates how online companies can track and advertise to children, including turning off targeted ads to kids under 13 by default and limiting push notifications.

WHAT TO WATCH FOR IN '24 Your AI friends have arrived — but chatbots are just the beginning. Standing in a courtyard at his company’s Menlo Park, California headquarters, Zuckerberg said this fall that Meta is "focused on building the future of human connection" — and painted a near-future where people interact with hologram versions of their friends or coworkers and with AI bots built to assist them. The company unveiled an army of AI bots — with celebrities such as Snoop Dogg and Paris Hilton lending their faces to play them — that social media users can interact with.

Next year, AI will be "integrated into virtually every corner of the platforms," Enberg said.

"Social apps will use AI to drive usage, ad performance and revenues, subscription sign ups, and commerce activity. AI will deepen both users’ and advertisers’ reliance and relationship with social media, but its implementation won’t be entirely smooth sailing as consumer and regulatory scrutiny will intensify," she added.

The analyst also sees subscriptions as an increasingly attractive revenue stream for some platforms. Inspired by Musk's X, subscriptions "started as a way to diversify or boost revenues as social ad businesses took a hit, but they have persisted and expanded even as the social ad market has steadied itself."

With major elections coming up in the US and India among other countries, AI's and social media's role in misinformation will continue to be front and center for social media watchers.

"We’re not prepared for this," A.J. Nash, vice president of intelligence at the cybersecurity firm ZeroFox, told the AP in May. "To me, the big leap forward is the audio and video capabilities that have emerged. When you can do that on a large scale, and distribute it on social platforms, well, it’s going to have a major impact."



Microsoft's Cloud Growth, Cash Flow Offer Respite from AI Spending Fears

FILE PHOTO: The logo of Microsoft at the 10th edition of the VivaTech technology startups and innovation fair in Paris, France, June 18, 2026. REUTERS/Gonzalo Fuentes/File Photo
FILE PHOTO: The logo of Microsoft at the 10th edition of the VivaTech technology startups and innovation fair in Paris, France, June 18, 2026. REUTERS/Gonzalo Fuentes/File Photo
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Microsoft's Cloud Growth, Cash Flow Offer Respite from AI Spending Fears

FILE PHOTO: The logo of Microsoft at the 10th edition of the VivaTech technology startups and innovation fair in Paris, France, June 18, 2026. REUTERS/Gonzalo Fuentes/File Photo
FILE PHOTO: The logo of Microsoft at the 10th edition of the VivaTech technology startups and innovation fair in Paris, France, June 18, 2026. REUTERS/Gonzalo Fuentes/File Photo

Microsoft on Wednesday delivered a big cash flow beat and forecast strong cloud growth, offering fresh evidence that its hefty AI bets were paying off even as concerns mount over Big Tech's spending spree.

The results underscore a widening financial divide among the industry's biggest AI spenders, as soaring infrastructure costs force some rivals to turn more heavily to capital markets.

Microsoft's shares rose more than 3% in after-hours trading. The company posted market-beating 48% growth in its Azure cloud business in its fiscal first quarter ended September, and generated $18.6 billion in free cash flow — some $10 billion more than analysts expected.

That financial firepower set the maker of the Windows operating system apart from rivals such as Alphabet and Meta, whose heavy AI investments have squeezed free cash flow and increased their reliance on borrowing.

Alphabet reported negative free cash flow of $9.07 billion in the third quarter as capital spending jumped and growth in its core ad business slowed, overshadowing a doubling of its cloud sales and sending its shares down 8% in extended trading. Meta last week posted its first cash burn in more than ⁠a decade, and said ⁠it planned to issue new stock to fund its growing capital costs.

"Microsoft's first-quarter report was about as clean as it gets for a company this size," said Jesse Cohen, senior analyst at Investing.com. "After Meta's and Alphabet's numbers revived AI-spending anxiety, this is the counterweight. Demand still exceeds supply, the commercial backlog is enormous, and returns are finally showing up in earnings and overall revenue."

The results also showed Microsoft capitalizing on corporate demand for AI, easing fears that the technology threatens its software empire and that its AI fortunes are too closely tied to unprofitable OpenAI. Still, its ties to the AI lab netted it $10 billion in revenue in the September quarter.

Microsoft shares have risen about 9% so far this year compared with a 13% rise in the S&P 500 ⁠index.

Microsoft's five-year credit default swaps — a measure of perceived default risk — remain the tightest among the largest tech companies, according to Truist, even as spreads have widened across much of the AI trade.

Reuters said that CEO Satya Nadella has sought to capture enterprise demand by giving customers cheaper options, as businesses grapple with the rising cost of deploying AI.

On a conference call with analysts, Nadella said the company was giving customers a range of AI options, some of them at lower cost than cutting-edge AI models such as Anthropic. The company is trying to make its Copilot products more useful with each model release by "consolidating the frontier gains for broad deployment," he added.

Last month, Microsoft said it would disclose Azure revenue in dollars, instead of just growth rates, offering a clearer picture of how its cloud business stacks up against rivals Amazon Web Services and Google Cloud.

Revenue at Microsoft's Azure cloud computing business grew to $33.17 billion in the quarter, topping Visible Alpha's estimate of $32.84 billion. Overall revenue rose by a fifth to $92.28 billion, and an adjusted profit of $4.89 per share beat an average estimate of $4.73 a share.

The company expects second-quarter Azure growth of 49% to 50%, above analyst estimates ⁠of 47.6%, according to Visible Alpha ⁠data. It forecast total sales of $96 billion to $97.1 billion, above estimates of $95.6 billion, according to LSEG data.

Capital expenditure for the quarter rose to $45.2 billion from $34.9 billion in the year-ago period, but came in below the company's own projection of $50 billion. So far in calendar 2026, Microsoft's capital expenditure has been $118.1 billion, which means it would have to spend $56.9 billion in the final three months of the year to hit its own forecast of $175 billion given in July.

Jonathan Neilson, Microsoft's vice president of investor relations, attributed the lower-than-expected capital expenditure to delays rather than any changes to the company's underlying spending plans.

"We did see some third-party capacity deliveries that we expected in first quarter were actually delayed," Neilson said.

Earlier on Wednesday, hyperscaler Oracle said it expects capital spending to peak this fiscal year and next, but pledged to raise no more than $20 billion in additional financing for AI through fiscal 2030.

Overall, Big Tech is expected to pump more than $700 billion this year into building data centers and securing the hardware and energy needed to develop and run AI technologies.

While faster revenue growth at these companies indicates their bets could be paying off, concerns over the cost of financing the outlay have heightened over the past few weeks.

Shrinking cash flows and rising debt loads at US tech companies, including recent stress at neocloud company CoreWeave as well as record-high costs to insure Meta's debt against default, have added to market turmoil.


Apple Shows First Touchscreen Laptops Amid Product Blitz

The Apple Inc logo is seen at the entrance to the Apple store in Brussels, Belgium November 28, 2022. (Reuters)
The Apple Inc logo is seen at the entrance to the Apple store in Brussels, Belgium November 28, 2022. (Reuters)
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Apple Shows First Touchscreen Laptops Amid Product Blitz

The Apple Inc logo is seen at the entrance to the Apple store in Brussels, Belgium November 28, 2022. (Reuters)
The Apple Inc logo is seen at the entrance to the Apple store in Brussels, Belgium November 28, 2022. (Reuters)

Apple CEO John Ternus unveiled the company's first touchscreen MacBooks on Wednesday, abandoning a long-held aversion to the technology as it caps a burst of product launches ahead of the holiday shopping season.

Ternus, a former Apple hardware veteran and the company's new CEO, took the stage at an Apple event in Los Angeles, part of a media blitz filled with new product launches.

He launched a folding iPhone, Duo, at Apple's Silicon Valley headquarters in September and a smart home hub in New York earlier this month. While those ‌products will test ‌new markets for Apple, the Los Angeles event ‌could ⁠rekindle an old question: should ⁠Apple put the touchscreens that it made mainstream in iPhones and iPads in its oldest product line?

Apple executives long resisted the idea, with Steve Jobs saying in 2010 that touchscreens on laptops were "ergonomically terrible" and then-CEO Tim Cook saying in 2012 that such devices would be as pleasing to users as converging a toaster and a refrigerator.

Before becoming Apple's ⁠latest CEO, Ternus argued that Apple already made a touchscreen ‌computer with its iPad lineup.

But touchscreens ‌have been widely available for more than a decade on Windows devices, ‌and with the iPhone nearing its two-decade anniversary, a new generation of ‌buyers expects screens to respond to touch.

"I believe they were always wrong on pushing back on touch, and this is the long arm of reality setting in," said Anshel Sag, an analyst at Moor Insights & Strategy. "Some things are purely ‌inevitable."

A key question for Apple is how customers will respond. The company has seen an uptick in ⁠Mac sales, ⁠but much of that growth has been among technology enthusiasts and businesses buying the machines to handle AI tasks on-device.

While Apple this week announced an upgraded base model of its MacBook Pro with a new M6 chip, Bloomberg News has reported that it plans to ship touchscreen models with its existing M5 Pro and M5 Max chips that already come in MacBook Pro models, meaning the new machines would not gain a significant performance boost over existing ones.

"The only thing people want is more memory and better processors for local models!" prominent tech commentator Jason Calacanis, the host of the All-In Podcast, wrote on X.


Data Center Next Door Divides Old Massachusetts Mill Town

This aerial photo shows the Markley Lowell Data Center surrounded by residential neighborhood homes and apartment buildings in Lowell, Massachusetts, on October 15, 2026. (Photo by Lauren Owens Lambert / AFP)
This aerial photo shows the Markley Lowell Data Center surrounded by residential neighborhood homes and apartment buildings in Lowell, Massachusetts, on October 15, 2026. (Photo by Lauren Owens Lambert / AFP)
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Data Center Next Door Divides Old Massachusetts Mill Town

This aerial photo shows the Markley Lowell Data Center surrounded by residential neighborhood homes and apartment buildings in Lowell, Massachusetts, on October 15, 2026. (Photo by Lauren Owens Lambert / AFP)
This aerial photo shows the Markley Lowell Data Center surrounded by residential neighborhood homes and apartment buildings in Lowell, Massachusetts, on October 15, 2026. (Photo by Lauren Owens Lambert / AFP)

Retiree Eileen Castle hasn't been able to enjoy her backyard since a data center moved in next door in Lowell, Massachusetts, bringing noise, fumes, dust and water mist.

But a few streets away, contractor Louis Haas is grateful to Markley, the company running the facility, for redeveloping an abandoned site he says was rife with drug use.

Dubbed "the Dungeon" by some locals for the imposing black silhouette it casts over a residential neighborhood of this old milling city, those opposing views encapsulate how data centers are polarizing communities across the United States.

Republican-governed states, with their looser regulations, host most of the country's current AI build-out. But in liberal-leaning New England, some feel betrayed by their elected representatives, while others fear being left behind if the industry is curbed.

- 'Nothing but noise' -

Over the din of construction behind a spiked fence, Castle, 82, told AFP her great-great-grandparents bought the property.

But since the data center moved into a disused pasta factory a decade ago, "We have had nothing but noise.

We have dust, dirt. We have all kinds of mist" from the adjoining cooling towers, which she fears could carry Legionnaires' disease.

Noxious fumes made a long interview outdoors impossible, and she lamented that her grandchildren can no longer swim in her small pool.

"I think every once in a while that maybe I should sell my house," she says, but adds her property value has plummeted.

"The Markley Group serves more than 600 clients in Massachusetts and connects the digital infrastructure that powers our economy, our schools, and the everyday needs of our community," Markley Group CEO Jeff Markley said in a statement to AFP.

The company said its backup diesel generators run only for five minute tests each week and, thanks to abatement efforts, produce "about 44 decibels of sound, quieter than a soft conversation three feet away."

It said it tests its water twice a year for Legionnaires', and has planted 2,000 trees.

In 2015, the city council gave Markley a 20-year property and personal property tax break estimated at $77 million, the Lowell Sun newspaper reported at the time.

Enthusiasm has since cooled. In March, the council unanimously passed a 360-day moratorium on construction and expansion of commercial data centers, though Markley's 352,000-square-foot site was grandfathered in.

Residents represented by the Conservation Law Foundation (CLF) and others have sued to challenge its expansion, which included increasing the number of generators to 27, and won a temporary injunction in August.

CLF attorney Adam Reynolds told AFP that it is the "compounding effect of pollution that's really significant" in a historically industrial area.

- Community divisions -

Markley has supporters. Haas, 50, who supplies coffee to a major tech company, said the boom had been good to contractors like him.

"I'm a big liberal, I'm a Democrat. But I'm also pro-jobs and pro-economy," he told AFP.

Markley said it employs more than 100 full-time staff in Lowell, a third of them local. On top of that, over 100 unionized trades workers work on campus.

Another backer, Sarah Bibeau, a 43-year-old single mother of two who works in the defense sector, told AFP the company had been "kind and considerate," fixing roads and offering favors ranging from yard work to free Red Sox tickets.

Detractors include Jake Fortes, a 44-year-old travel agent who founded the group "Honest Future for Lowell" and whose property sits on the fence line.

"We're getting steamrolled by this company. So some of us have taken it to task," Fortes told AFP.

Like Castle, he feels let down by Democrats, including state Governor Maura Healey -- who signed a sales tax break for data centers into law but then paused new applications this year, a reversal that illustrates the party's dilemma.

Luz Marte, a 38-year-old lab technician, bought her house a year ago, without realizing the site was a data center.

"It sounds very loud, like an airplane is going to take off," she told AFP as her three-year-old son played.

Her home insurer recently moved to triple her premium, which she believes is linked to Markley buying a building even closer to her property.

"This is a home I bought for my son, to grow up, feel alive, and have a future," she said. "Now I'm doubting that idea."