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."



Nintendo to Hike Switch 2 Price, Warns on Profits

FILE - A Nintendo sign is seen outside Nintendo's official store in the Shibuya district of Tokyo, Jan. 23, 2020. (AP Photo/Jae C. Hong, File)
FILE - A Nintendo sign is seen outside Nintendo's official store in the Shibuya district of Tokyo, Jan. 23, 2020. (AP Photo/Jae C. Hong, File)
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Nintendo to Hike Switch 2 Price, Warns on Profits

FILE - A Nintendo sign is seen outside Nintendo's official store in the Shibuya district of Tokyo, Jan. 23, 2020. (AP Photo/Jae C. Hong, File)
FILE - A Nintendo sign is seen outside Nintendo's official store in the Shibuya district of Tokyo, Jan. 23, 2020. (AP Photo/Jae C. Hong, File)

Japanese gaming giant Nintendo said Friday it will hike the price of its Switch 2 gaming console as memory chip costs soar, warning that net profit would fall 27 percent this year.

Sony -- whose PlayStation5 has already risen in price -- was more upbeat, projecting a 13-percent rise in income but still with falling sales of its ageing console.

Nintendo said the Switch 2 price in Japan will rise 20 percent from May 25, and from September 1 by 11 percent in the United States to $499.99 and in Europe by six percent to 499.99 euros.

For the year to next March, Nintendo expects net profit to drop 27 percent to 310 billion yen ($1.98 billion) on sales of 2.05 trillion, marking a fall of 11.4 percent.

It also forecast 370 billion yen in operating profit, considerably below the average analyst estimate of 480 billion yen, according to Bloomberg News.

Net profit surged 52 percent to 424 billion yen last year on annual sales of 2.31 trillion yen, nearly doubling from the previous year, Nintendo said in a statement.

"Nintendo Switch 2 got off to a good start following its launch in June and global sales continued to grow after that," AFP quoted the company as saying.

It sold 19.86 million units of the new console by March, thanks to games like "Pokemon Pokopia,” "Mario Kart World" and "Donkey Kong Bananza.”

Price rises of memory chips fueled by the artificial intelligence boom have hit makers of games consoles, smartphones and other devices, while disruptions linked to the Iran war have exacerbated supply problems.

Sony said Friday that it sold 16 million PlayStation5 units in the past fiscal year, down from 18.5 million in the previous 12 months.

With 92 million PlayStation2 units sold since its launch in 2020, analysts said the firm was well placed to benefit from the release of smash hit "Grand Theft Auto VI", due in November.

"If there is a game that can sell PlayStations by the millions, it is this one," Gaming industry consultant Serkan Toto told AFP.

For the year to March 2027, the game division is expected to enjoy higher profits despite falling sales, Sony said.

"Sony's more mature PS5 console cycle leaves it better placed to weather higher memory costs," said Amir Anvarzadeh, strategist at Asymmetric Advisors.

"Having already moved past the heavy hardware penetration costs typical of earlier years, Sony's bottom line stands to benefit significantly from the high-margin software sales and ecosystem engagement this launch should trigger," Anvarzadeh said.

Nintendo though is in a more difficult position, Toto said, as Switch 2 customers are "especially price sensitive.”

"The first year game lineup for Switch 2 is much weaker than for its predecessor," he said.

"But now it's time for them to really step on the gas on the software side."


Tesla's China-made EV Sales Jump 36% in April, Extending Rebound

FILE PHOTO: A Tesla electric vehicle is charged at a Tesla Supercharger battery charging station in Barakaldo, Spain, March 29, 2025. REUTERS/Vincent West/File Photo
FILE PHOTO: A Tesla electric vehicle is charged at a Tesla Supercharger battery charging station in Barakaldo, Spain, March 29, 2025. REUTERS/Vincent West/File Photo
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Tesla's China-made EV Sales Jump 36% in April, Extending Rebound

FILE PHOTO: A Tesla electric vehicle is charged at a Tesla Supercharger battery charging station in Barakaldo, Spain, March 29, 2025. REUTERS/Vincent West/File Photo
FILE PHOTO: A Tesla electric vehicle is charged at a Tesla Supercharger battery charging station in Barakaldo, Spain, March 29, 2025. REUTERS/Vincent West/File Photo

Tesla's China-made EV sales jumped 36% on the year in April, a sixth month of gains, as the US automaker fights to hold ground against a wave of cheaper Chinese rivals.

Deliveries of Model 3 and Model Y vehicles built at Tesla's Shanghai plant, including those exported to Europe ⁠and other markets, totaled ⁠79,478 units, data from China Passenger Car Association showed on Thursday.

That was down 7.2% from March this year but well above April 2025 levels.

The figures suggest Tesla is stabilizing in its two most important markets outside the US after a bruising stretch of market share losses, ⁠though regulatory delays around its Full Self-Driving software and new Chinese EVs may limit the recovery.

The US automaker's sales continued to recoverlast month in several European markets, including Sweden, France and Denmark. This was supported by stronger demand for battery EVs as oil prices spiked due to the US-Iran conflict.

Tesla faces regulatory obstacles, with the path toward approval of its Full Self-Driving (FSD) system highly valued by customers, particularly in China, still ⁠uncertain.

The company ⁠now expects to secure full FSD approval in China by the third quarter, CFO Vaibhav Taneja said in April, a delay from its initial target of the first quarter.

Emails from some European regulators reviewed by Reuters indicate EU skepticism toward the technology.

The recovery follows a punishing stretch for Tesla, which lost almost half its European market share in 2025.

Nevertheless, Tesla is stepping up efforts to defend its position against new Chinese models by developing a cheaper, compact SUV produced in China, Reuters reported last month.


Musk's SpaceX Strikes Data Center Deal with Anthropic

The deal involving Elon Musk's SpaceX and Anthropic marks a surprising partnership between two companies whose leaders have been publicly at odds. Brendan SMIALOWSKI / AFP
The deal involving Elon Musk's SpaceX and Anthropic marks a surprising partnership between two companies whose leaders have been publicly at odds. Brendan SMIALOWSKI / AFP
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Musk's SpaceX Strikes Data Center Deal with Anthropic

The deal involving Elon Musk's SpaceX and Anthropic marks a surprising partnership between two companies whose leaders have been publicly at odds. Brendan SMIALOWSKI / AFP
The deal involving Elon Musk's SpaceX and Anthropic marks a surprising partnership between two companies whose leaders have been publicly at odds. Brendan SMIALOWSKI / AFP

AI startup Anthropic announced Wednesday it has agreed to a major computing partnership with Elon Musk's SpaceX, securing access to a vast data center as the Claude maker scrambles to keep pace with surging demand for its AI services.

Under the deal, Anthropic will use all of the compute capacity at SpaceX's Colossus 1 data center in Memphis, Tennessee -- a facility originally built to power Musk's rival AI venture, xAI, AFP said.

The agreement gives Anthropic access to more than 300 megawatts of capacity, backed by over 220,000 Nvidia AI chips, within one month.

The company said the additional capacity would directly benefit subscribers to its Claude Pro and Claude Max plans.

Anthropic also announced it was immediately letting users do more with its technology.

The company said it was doubling the amount of Claude Code -- an AI-powered coding assistant that can write, edit, and debug software -- that paying subscribers can use in a five-hour window and eliminating restrictions that had previously cut access during busy periods.

The SpaceX deal marks a surprising partnership between two companies whose leaders have been publicly at odds.

Musk wrote in February that Anthropic "hates Western Civilization" and questioned whether there was a "more hypocritical company than Anthropic."

Anthropic CEO Dario Amodei has rankled Musk and other Silicon Valley insiders with his public warnings about the dangers of AI.

Amodei has also clashed with the Trump administration after the Pentagon designated Anthropic a supply chain risk earlier this year, a move Anthropic said amounted to unconstitutional retaliation for the company's advocacy on AI safety.

But on Wednesday Musk changed his tone, writing on X that he had spent time with senior Anthropic staff over the past week and was "impressed."

"Everyone I met was highly competent and cared a great deal about doing the right thing," he wrote.

In a separate post, Musk said he was "dissolving" xAI as a standalone company. "It will just be SpaceXAI, the AI products from SpaceX," he added, without elaborating.

SpaceX merged with xAI earlier this year in a deal valuing the two companies at $1.25 trillion. The company is widely expected to pursue an IPO this year that could be among the largest in corporate history.

The Colossus facility in Memphis has been a source of controversy.

xAI installed dozens of natural gas-burning turbines to power the site, claiming no federal permit was required because they were only for temporary use -- a move that drew persistent protests from civil rights groups who said it worsened air pollution in the Memphis area.

The SpaceX pact is the latest in a string of major compute agreements Anthropic has announced in recent months as the company looks to secure the computing power needed to meet its growing needs.

These include megadeals with Amazon, Google and Broadcom, Microsoft and Nvidia, and an infrastructure investment with Fluidstack.

- AI battle -

The announcement comes as Anthropic and OpenAI -- crosstown rivals in San Francisco -- are locked in a direct battle to equip businesses with AI agents: semi-autonomous assistants capable of writing code, analyzing large volumes of documents, or processing medical records, whose adoption is accelerating rapidly.

On Tuesday, Anthropic unveiled 10 AI agents tailored specifically for banks, insurers, and asset managers -- tools capable of drafting sales presentations, conducting regulatory checks, and analyzing financial statements.

OpenAI, meanwhile, announced a partnership Tuesday with global auditing giant PwC to support its financial operations.

But the race to deploy AI agents is running headlong into a scramble for the chips and energy needed to power them.

Data center construction in the United States, despite moving at an accelerated pace, has struggled to keep up.

And the energy-hungry projects, blamed for driving up household electricity bills, are drawing growing opposition from American citizens -- an issue that could weigh on November's midterm elections.