WEBVTT - Elon's Porn Problem (and Tesla Headache)

0:00:03.120 --> 0:00:11.080
<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio news.

0:00:14.200 --> 0:00:17.120
<v Speaker 2>Well, Elon Musk is now the richest person on the planet.

0:00:17.440 --> 0:00:20.320
<v Speaker 3>More than half the satellites in space are owned and

0:00:20.400 --> 0:00:24.599
<v Speaker 3>controlled by one man. Well, he's a legitimate super genius.

0:00:24.800 --> 0:00:25.759
<v Speaker 3>I mean legitimate.

0:00:25.920 --> 0:00:28.600
<v Speaker 4>He says he's always voted for Democrats, but this year

0:00:28.640 --> 0:00:29.360
<v Speaker 4>it will be different.

0:00:29.400 --> 0:00:30.360
<v Speaker 1>He'll vote Republican.

0:00:30.640 --> 0:00:33.120
<v Speaker 5>There is a reason the US government is so reliant

0:00:33.159 --> 0:00:33.520
<v Speaker 5>on him.

0:00:33.720 --> 0:00:36.720
<v Speaker 2>Alon Musk is a scam artist and he's done nothing.

0:00:37.960 --> 0:00:40.680
<v Speaker 1>Anything he does, he's fascinating people.

0:00:50.440 --> 0:00:54.480
<v Speaker 5>Welcome to Elon, Inc. Bloomberg's weekly podcast about Elon Musk.

0:00:54.760 --> 0:00:58.600
<v Speaker 5>It's April second, twenty twenty four. I'm your host, David

0:00:58.600 --> 0:01:03.400
<v Speaker 5>Papadopolis Bright and early this morning, Tesla released their first

0:01:03.480 --> 0:01:08.080
<v Speaker 5>quarter delivery and production report and it was disappointing, so

0:01:08.280 --> 0:01:11.839
<v Speaker 5>disappointing that Tesla scher sank seven percent in a matter

0:01:11.880 --> 0:01:15.080
<v Speaker 5>of minutes. But if you're an X user and you

0:01:15.200 --> 0:01:18.640
<v Speaker 5>opened X to follow that news this morning, odds are

0:01:18.680 --> 0:01:21.240
<v Speaker 5>that you saw a little bit of Tesla news and

0:01:21.280 --> 0:01:24.400
<v Speaker 5>a whole lot of something else. The site is a

0:01:24.720 --> 0:01:28.800
<v Speaker 5>wash in spamy ads for adult content and actual pornography.

0:01:29.480 --> 0:01:32.600
<v Speaker 5>What's going on here is this part of Musk's vision

0:01:32.680 --> 0:01:35.600
<v Speaker 5>for free speech. We'll get into all of this X

0:01:35.720 --> 0:01:38.760
<v Speaker 5>rated stuff on X what's happening and what it means

0:01:38.800 --> 0:01:42.039
<v Speaker 5>for the one time global public square. We'll turn to

0:01:42.080 --> 0:01:47.160
<v Speaker 5>our editor extraordinary Raihan Harmansi and a special guest, John Herman,

0:01:47.240 --> 0:01:51.520
<v Speaker 5>who covers technology for New York Magazine, to dig into

0:01:51.520 --> 0:01:53.960
<v Speaker 5>the Tesla numbers. First that we have Dana Hall, who

0:01:54.000 --> 0:01:58.040
<v Speaker 5>covers all things Elon Musk for US. Hello, Dana Hey.

0:01:58.680 --> 0:02:01.400
<v Speaker 5>And we have Max Chapkin here in the studio, Max

0:02:01.520 --> 0:02:06.040
<v Speaker 5>senior reporter at Business Week. Maxilo Happy Tesla Deliveries Day,

0:02:06.120 --> 0:02:09.200
<v Speaker 5>David Happy Tesla Deliveries Day to you. Although it was

0:02:09.280 --> 0:02:14.560
<v Speaker 5>not Dana Hall very happy for Tesla shareholders, the numbers

0:02:14.680 --> 0:02:19.960
<v Speaker 5>were grimy. The company missed Wall Street estimates by a

0:02:19.960 --> 0:02:23.320
<v Speaker 5>fair amount, delivering something like three hundred and eighty thousand,

0:02:23.400 --> 0:02:26.000
<v Speaker 5>I believe, which was about sixty thousand blow estimates, and

0:02:26.040 --> 0:02:30.680
<v Speaker 5>it also represented a decline from deliveries of Tesla's a

0:02:30.800 --> 0:02:32.880
<v Speaker 5>year ago. What happened here?

0:02:34.000 --> 0:02:36.920
<v Speaker 6>Yeah, this was very ugly. I mean there's no there's

0:02:36.960 --> 0:02:39.840
<v Speaker 6>no two ways about it. This was like a horrible, terrible,

0:02:39.960 --> 0:02:43.639
<v Speaker 6>no good, very bad start to the year. And yeah,

0:02:43.639 --> 0:02:47.240
<v Speaker 6>they delivered three hundred and eighty seven thousand vehicles, which

0:02:47.280 --> 0:02:50.280
<v Speaker 6>is like an eight point five percent drop from the

0:02:50.360 --> 0:02:52.800
<v Speaker 6>number of cars that they delivered in the first quarter

0:02:52.919 --> 0:02:56.560
<v Speaker 6>a year ago. And so basically Tesla has a demand problem.

0:02:56.600 --> 0:02:59.200
<v Speaker 6>Like you can blame interest rates or you know, the

0:02:59.240 --> 0:03:03.320
<v Speaker 6>company talked about diversions caused by the Red Sea conflict

0:03:03.360 --> 0:03:07.280
<v Speaker 6>and the arson attacked at the gigafactory in Berlin, but fundamentally,

0:03:07.360 --> 0:03:10.960
<v Speaker 6>like it's it's about demand, like Tesla has an aging lineup,

0:03:11.400 --> 0:03:14.519
<v Speaker 6>and yes, like the macro environment for buying a big

0:03:14.560 --> 0:03:18.480
<v Speaker 6>purchase like a car is lousy, but like Tesla is

0:03:18.560 --> 0:03:21.040
<v Speaker 6>running out of excuses. They have an aging lineup and

0:03:21.160 --> 0:03:24.560
<v Speaker 6>people are sitting on the sidelines. And as Max and

0:03:24.560 --> 0:03:29.639
<v Speaker 6>I have talked a lot together, Elon Musk's behavior is polarizing.

0:03:29.840 --> 0:03:33.200
<v Speaker 6>Most people don't like that, and like I'm not you know,

0:03:33.240 --> 0:03:35.800
<v Speaker 6>we don't have like quantifiable data to show how many

0:03:35.840 --> 0:03:38.320
<v Speaker 6>consumers are not buying Tesla's because they don't like the

0:03:38.360 --> 0:03:41.240
<v Speaker 6>fact that Elon is very political on the platform that

0:03:41.280 --> 0:03:44.640
<v Speaker 6>he owns. But it's it's like it's not something that

0:03:44.680 --> 0:03:45.720
<v Speaker 6>you can brush aside.

0:03:45.760 --> 0:03:48.200
<v Speaker 5>And to that point, Max, I mean it is indeed,

0:03:48.200 --> 0:03:50.680
<v Speaker 5>as Dana said, something we've been over before. But I

0:03:50.720 --> 0:03:53.600
<v Speaker 5>think with the result like this, it's, you know, it's

0:03:53.640 --> 0:03:56.960
<v Speaker 5>becoming more and more acute and louder and louder that

0:03:57.160 --> 0:03:59.960
<v Speaker 5>it is just an enormous problem having a CEO for

0:04:00.080 --> 0:04:01.720
<v Speaker 5>as brilliant as he may be, and all the things

0:04:01.800 --> 0:04:04.240
<v Speaker 5>he may have done for Tesla, whose worldview is so

0:04:04.440 --> 0:04:06.760
<v Speaker 5>misaligned with that of his customer base.

0:04:06.960 --> 0:04:09.200
<v Speaker 2>Yeah, I mean it's almost like if you spend eighteen

0:04:09.280 --> 0:04:16.520
<v Speaker 2>months embracing like a extremely niche, extremely polarizing, borderline racist ideology,

0:04:16.520 --> 0:04:18.760
<v Speaker 2>you're gonna turn some people off. I mean, like there's

0:04:18.800 --> 0:04:21.880
<v Speaker 2>a reason like car companies, like when they advertise cars

0:04:21.880 --> 0:04:28.800
<v Speaker 2>tend to embrace pretty like classic tropes, apple pies, American flags.

0:04:28.960 --> 0:04:33.400
<v Speaker 2>They don't necessarily lead with cat turd and like freaky

0:04:33.520 --> 0:04:36.200
<v Speaker 2>videos from the border. And that's of course what Elon

0:04:36.279 --> 0:04:38.800
<v Speaker 2>Musk has done. And again, as Dana says, like, we

0:04:38.839 --> 0:04:41.280
<v Speaker 2>don't know for sure how much of this is Elon's behavior,

0:04:41.320 --> 0:04:43.880
<v Speaker 2>how much of this is sort of macro environment stuff.

0:04:44.160 --> 0:04:46.440
<v Speaker 2>And then there's this third factor, which is that evs

0:04:46.680 --> 0:04:49.800
<v Speaker 2>are just not setting the world on fire quite like

0:04:49.839 --> 0:04:52.080
<v Speaker 2>they once did in terms of growth right, Like, they've

0:04:52.360 --> 0:04:55.080
<v Speaker 2>a lot of people have adopted electric vehicles, and we

0:04:55.080 --> 0:04:58.760
<v Speaker 2>should say, like selling three hundred something electric cars in

0:04:58.800 --> 0:05:01.920
<v Speaker 2>a quarter, that is achievement in some sense, but it's

0:05:02.040 --> 0:05:04.440
<v Speaker 2>just not moving in the direction that Elon Musk needs

0:05:04.480 --> 0:05:05.960
<v Speaker 2>it to be for this company to grow.

0:05:06.040 --> 0:05:07.160
<v Speaker 7>It's shrinking.

0:05:07.200 --> 0:05:10.400
<v Speaker 5>In fact, Hey, Dan, you had actually seen early this

0:05:10.440 --> 0:05:13.560
<v Speaker 5>morning a tweet that you thought was spot on on

0:05:14.440 --> 0:05:15.000
<v Speaker 5>this topic.

0:05:15.440 --> 0:05:18.640
<v Speaker 6>So Ross Gerber, who's like a long time former teslable,

0:05:18.839 --> 0:05:23.680
<v Speaker 6>lives in Santa Monica, California, guy tweeted this morning basically,

0:05:23.720 --> 0:05:26.960
<v Speaker 6>Tesla can't sell its cars due to Elon's behavior. Let's

0:05:26.960 --> 0:05:30.600
<v Speaker 6>stop blaming the Houthi rebels or German environmental terrorists or

0:05:30.640 --> 0:05:33.640
<v Speaker 6>a recession that never came or interest rates. Only one

0:05:33.680 --> 0:05:35.120
<v Speaker 6>person responsible for this.

0:05:35.880 --> 0:05:38.080
<v Speaker 7>You know, and this guy, Ross Gerber, I mean, for

0:05:38.279 --> 0:05:41.720
<v Speaker 7>years was like the most reliable testlable. He basically would

0:05:41.760 --> 0:05:45.960
<v Speaker 7>cheer on anything they did with extreme enthusiasm. And I

0:05:45.960 --> 0:05:49.560
<v Speaker 7>guess it's a credit to his intellectual honesty that he's come,

0:05:49.800 --> 0:05:51.520
<v Speaker 7>you know, he's basically gone one to eighty on this.

0:05:51.600 --> 0:05:55.800
<v Speaker 7>But I think it's also sort of Gerber like many

0:05:55.839 --> 0:06:00.560
<v Speaker 7>people really bought into the ev story the environmentalist story. Uh,

0:06:00.720 --> 0:06:03.520
<v Speaker 7>he is not on board for the crazy right wing signaling.

0:06:03.839 --> 0:06:06.520
<v Speaker 7>And I think there are a lot of Tesla investors

0:06:06.560 --> 0:06:08.520
<v Speaker 7>like that, and frankly, like a lot of car buyers

0:06:08.560 --> 0:06:11.120
<v Speaker 7>like that. It's probably the majority of car buyers are

0:06:11.240 --> 0:06:13.680
<v Speaker 7>just even if they're conservative, even if they vote Republican,

0:06:14.120 --> 0:06:18.000
<v Speaker 7>are not super into like Elon's tweeting.

0:06:18.040 --> 0:06:21.600
<v Speaker 5>Dennat to that point. Is this merely a window into

0:06:21.640 --> 0:06:27.240
<v Speaker 5>the broader EV market woes or is a fair amount

0:06:27.279 --> 0:06:30.520
<v Speaker 5>of this problem in addition to those broader woes a

0:06:30.720 --> 0:06:33.000
<v Speaker 5>Tesla and Elon problem right now?

0:06:34.440 --> 0:06:36.719
<v Speaker 6>Well, you know, the long arc is that like the

0:06:36.760 --> 0:06:40.440
<v Speaker 6>world is still moving towards electrification, so like that trend

0:06:40.560 --> 0:06:44.000
<v Speaker 6>is not going away, but the like rapid double digit

0:06:44.160 --> 0:06:47.640
<v Speaker 6>year over year growth that like investors had become expected

0:06:47.680 --> 0:06:50.640
<v Speaker 6>to is no longer happening. And Tesla as the market

0:06:50.720 --> 0:06:53.120
<v Speaker 6>leader here in the US, is going to be like

0:06:53.160 --> 0:06:55.080
<v Speaker 6>the Canary and the Cold Mine in terms of that.

0:06:55.160 --> 0:06:57.400
<v Speaker 6>So you've already seen like a lot of other automakers

0:06:57.480 --> 0:07:00.560
<v Speaker 6>like pull back on their plans, Like people are now

0:07:00.600 --> 0:07:04.479
<v Speaker 6>talking a lot about hybrids. Tesla only makes evs and

0:07:05.000 --> 0:07:08.560
<v Speaker 6>like to have this kind of slump in sales after

0:07:08.600 --> 0:07:12.160
<v Speaker 6>a quarter where they did all this stuff like free supercharging,

0:07:12.360 --> 0:07:17.000
<v Speaker 6>thousand dollars discounts, like you know, like advertising, like all

0:07:17.040 --> 0:07:19.840
<v Speaker 6>these executives besides Elon like talking up the car and

0:07:19.880 --> 0:07:22.840
<v Speaker 6>doing all this consumer education. I think they really have

0:07:22.880 --> 0:07:24.600
<v Speaker 6>to kind of look at their strategy. You know, for

0:07:24.640 --> 0:07:27.120
<v Speaker 6>so many years Elon was like, we don't have a

0:07:27.160 --> 0:07:30.160
<v Speaker 6>demand problem, we have a production problem. Now they actually

0:07:30.200 --> 0:07:31.600
<v Speaker 6>kind of have to reckon with the fact that they

0:07:31.600 --> 0:07:34.880
<v Speaker 6>have a demand problem. And they've said very clearly to

0:07:35.000 --> 0:07:39.280
<v Speaker 6>investors that they're in between two growth waves. So until

0:07:39.320 --> 0:07:42.240
<v Speaker 6>they get that next wave of growth ready, which is

0:07:42.280 --> 0:07:44.360
<v Speaker 6>the next car, Like, what are they.

0:07:44.280 --> 0:07:44.640
<v Speaker 7>Going to do?

0:07:44.840 --> 0:07:46.560
<v Speaker 6>And I mean, the other thing that I really noticed

0:07:46.560 --> 0:07:49.680
<v Speaker 6>about this this press release was they don't break out

0:07:49.760 --> 0:07:51.840
<v Speaker 6>sales of the cyber truck. And I know, David that

0:07:51.880 --> 0:07:53.920
<v Speaker 6>you were very excited about the cyber truck, but they're

0:07:53.960 --> 0:07:57.000
<v Speaker 6>not even telling us how many cyber trucks they made,

0:07:57.120 --> 0:07:58.600
<v Speaker 6>much less delivered.

0:07:58.320 --> 0:08:01.000
<v Speaker 5>Which probably means that the number is somewhere between like

0:08:01.080 --> 0:08:02.840
<v Speaker 5>twenty and fifty I suppose.

0:08:03.120 --> 0:08:05.680
<v Speaker 6>Well, the other thing that's super interesting about Tesla's release

0:08:05.720 --> 0:08:07.920
<v Speaker 6>today is for the first time they talked about energy

0:08:07.920 --> 0:08:11.400
<v Speaker 6>storage which is you know, Tesla sells these big batteries

0:08:11.440 --> 0:08:15.120
<v Speaker 6>to utility companies like PG and E, and they deployed

0:08:15.240 --> 0:08:18.000
<v Speaker 6>you know, over four thousand megawat hours of energy storage

0:08:18.000 --> 0:08:21.200
<v Speaker 6>products in Q one, the highest quarterly deployment yet. So

0:08:21.400 --> 0:08:24.160
<v Speaker 6>what I predict is that as the car business kind

0:08:24.160 --> 0:08:27.520
<v Speaker 6>of stuck in this trough, you're going to see Tesla

0:08:27.760 --> 0:08:30.280
<v Speaker 6>really start talking about the energy side of their business,

0:08:30.400 --> 0:08:32.120
<v Speaker 6>and that is where the growth is going to come

0:08:32.240 --> 0:08:34.680
<v Speaker 6>for the next year or two, because they're not going

0:08:34.760 --> 0:08:36.600
<v Speaker 6>to really have much growth on the car side.

0:08:36.760 --> 0:08:39.000
<v Speaker 2>I will say, you know this on this question of

0:08:39.360 --> 0:08:42.000
<v Speaker 2>is it a growth stock without growth, The way it

0:08:42.040 --> 0:08:45.480
<v Speaker 2>becomes a growth stock is the full self driving thing.

0:08:45.720 --> 0:08:47.360
<v Speaker 7>And I think you know so much of that.

0:08:47.440 --> 0:08:50.400
<v Speaker 2>The valuation the sort of like it's worth ten times

0:08:50.480 --> 0:08:52.920
<v Speaker 2>what other car companies are worth based on the number

0:08:52.920 --> 0:08:55.480
<v Speaker 2>of cars they've sold. The reason for that is because

0:08:56.240 --> 0:08:58.920
<v Speaker 2>investors and even a lot of analysts have bought the

0:08:58.960 --> 0:09:02.280
<v Speaker 2>story that Elon Musk has been selling about Tesla as

0:09:02.600 --> 0:09:05.040
<v Speaker 2>not a car company as much as an AI company,

0:09:05.080 --> 0:09:08.160
<v Speaker 2>as a as a basically essentially a Silicon Valley company

0:09:08.200 --> 0:09:10.120
<v Speaker 2>that only looks like a car company. And I think

0:09:10.120 --> 0:09:12.719
<v Speaker 2>that's why we saw. You know, Dana made a very

0:09:13.040 --> 0:09:15.640
<v Speaker 2>prescient comment last week. We were talking about this for

0:09:15.800 --> 0:09:19.080
<v Speaker 2>you felt full self driving thing, and and Dana said,

0:09:19.080 --> 0:09:20.560
<v Speaker 2>this is a good thing to say if you're about

0:09:20.559 --> 0:09:24.240
<v Speaker 2>to have a terrible quarter, because right, in some sense,

0:09:24.480 --> 0:09:27.320
<v Speaker 2>if you believe the full self driving story, which I think,

0:09:27.400 --> 0:09:29.880
<v Speaker 2>as we've talked about in this podcast, lots of reasons

0:09:29.880 --> 0:09:31.440
<v Speaker 2>to be skeptical of that story. You know, they've been

0:09:31.440 --> 0:09:33.040
<v Speaker 2>talking about it for a bit basically a decade and

0:09:33.559 --> 0:09:37.800
<v Speaker 2>haven't made a ton of like you know, verifiable progress.

0:09:38.320 --> 0:09:41.240
<v Speaker 2>If you believe the story, nonetheless, then these results don't

0:09:41.240 --> 0:09:43.640
<v Speaker 2>matter that much because in the future, the robotaxties are

0:09:43.679 --> 0:09:46.040
<v Speaker 2>gonna come and it's going to change everything. And I

0:09:46.040 --> 0:09:47.440
<v Speaker 2>think that's why we see if you look at Elon

0:09:47.520 --> 0:09:50.200
<v Speaker 2>Musk's Twitter page right now, the pin tweet, which is

0:09:50.240 --> 0:09:52.920
<v Speaker 2>like the thing that you first see is saying that

0:09:53.000 --> 0:09:55.640
<v Speaker 2>you know, full self driving is better than anybody realizes.

0:09:55.679 --> 0:09:58.040
<v Speaker 2>It's so freaking good. And so I think we're going

0:09:58.120 --> 0:10:01.000
<v Speaker 2>to see over the next few months that's going to

0:10:01.080 --> 0:10:03.560
<v Speaker 2>be the story they go with, selling what's the calm,

0:10:03.600 --> 0:10:06.160
<v Speaker 2>what's the In certain ways, it's the only story they

0:10:06.200 --> 0:10:06.760
<v Speaker 2>have to go with.

0:10:07.200 --> 0:10:09.880
<v Speaker 5>I will just say this, Dana, though, there's one group

0:10:09.960 --> 0:10:13.040
<v Speaker 5>out there in the in the Tesla investing universe that

0:10:13.160 --> 0:10:16.640
<v Speaker 5>is thrilled, which is the short sellers, the group that

0:10:16.800 --> 0:10:20.320
<v Speaker 5>Elon Musk hates, the people who have bet against Tesla stock.

0:10:20.360 --> 0:10:22.440
<v Speaker 5>I saw a report the other day that said they

0:10:22.480 --> 0:10:25.200
<v Speaker 5>are up billions and billions of dollars this year. So

0:10:25.280 --> 0:10:33.120
<v Speaker 5>at least someone out there apparently is raking it in. Okay,

0:10:33.360 --> 0:10:35.720
<v Speaker 5>So Max and I are now joined in the studio

0:10:35.840 --> 0:10:39.680
<v Speaker 5>by our very own Rayhan HARMANCI, senior editor of the

0:10:39.720 --> 0:10:43.600
<v Speaker 5>podcast He Love. They're Rayhan. Hello, and we brought in

0:10:43.679 --> 0:10:47.040
<v Speaker 5>John Herman, who just wrote a piece on X's X

0:10:47.160 --> 0:10:48.880
<v Speaker 5>Rated problem for New York Magazine.

0:10:49.160 --> 0:10:50.600
<v Speaker 3>Hey John, thanks for having me on.

0:10:51.440 --> 0:10:55.320
<v Speaker 5>Thank you for being here. Okay, So, Rayhan, we're gonna

0:10:55.320 --> 0:10:57.920
<v Speaker 5>start with you. Give us a little bit of the

0:10:59.120 --> 0:11:03.719
<v Speaker 5>long arc of Twitter and X and pornography.

0:11:04.040 --> 0:11:04.640
<v Speaker 1>Oh Man.

0:11:05.240 --> 0:11:08.079
<v Speaker 8>Well, in a previous life, I was a tech culture

0:11:08.120 --> 0:11:12.160
<v Speaker 8>reporter at BuzzFeed, actually with John, and this is like

0:11:12.200 --> 0:11:14.600
<v Speaker 8>twenty twelve. Twitter was only a few years old, and

0:11:14.679 --> 0:11:17.920
<v Speaker 8>even then porn was a huge issue. Porn is always

0:11:17.920 --> 0:11:22.319
<v Speaker 8>an issue, and every time there's an opportunity for users

0:11:22.360 --> 0:11:23.200
<v Speaker 8>to upload things.

0:11:23.679 --> 0:11:25.880
<v Speaker 1>People are going to upload sexual content.

0:11:26.120 --> 0:11:29.760
<v Speaker 8>Twitter has had long had a reputation as being maybe

0:11:29.840 --> 0:11:33.719
<v Speaker 8>let's say, more open to porn than other social networks.

0:11:33.800 --> 0:11:38.439
<v Speaker 8>Albeit they employed content moderation teams and you know, did

0:11:38.440 --> 0:11:42.440
<v Speaker 8>their best to eradicate offensive material. But over time there's

0:11:42.440 --> 0:11:45.440
<v Speaker 8>been a lot of funny, little mini scandals, like people

0:11:45.520 --> 0:11:49.440
<v Speaker 8>might remember that in twenty seventeen, the Senator Ted Cruz

0:11:49.760 --> 0:11:52.960
<v Speaker 8>liked a bit of sexual content that spawned a lot

0:11:53.000 --> 0:11:55.800
<v Speaker 8>of jokes. And then in twenty eighteen, the actor de Norris,

0:11:55.800 --> 0:11:57.520
<v Speaker 8>known for breaking bad, he actually.

0:11:57.240 --> 0:11:59.280
<v Speaker 1>Just tweeted the words sex gift.

0:11:59.679 --> 0:12:03.680
<v Speaker 8>So this has been happening, but it's worth noting that

0:12:04.080 --> 0:12:07.880
<v Speaker 8>this issue has not been helped by elon cutting content

0:12:07.960 --> 0:12:13.319
<v Speaker 8>moderation teams in general at Twitter. And you know, there's

0:12:13.440 --> 0:12:16.679
<v Speaker 8>like a lot of really awful and criminal types of

0:12:16.720 --> 0:12:21.319
<v Speaker 8>pornography that are also on the platform and that make

0:12:21.400 --> 0:12:23.960
<v Speaker 8>content moderation you know, illegal necessity.

0:12:24.480 --> 0:12:26.520
<v Speaker 5>So the other day, I believe you told me that

0:12:26.800 --> 0:12:30.800
<v Speaker 5>you have a friend of yours who said, you know, Rayhon,

0:12:31.000 --> 0:12:35.119
<v Speaker 5>actually I go to X specifically for poor.

0:12:35.240 --> 0:12:37.880
<v Speaker 8>Yeah, I was really fascinated by this. I have a

0:12:37.880 --> 0:12:42.280
<v Speaker 8>friend who only uses X for porn. He made an

0:12:42.320 --> 0:12:46.800
<v Speaker 8>account simply to look at porn. And when I was

0:12:46.840 --> 0:12:49.319
<v Speaker 8>like looking up older stories about Twitter and porn, I

0:12:49.400 --> 0:12:52.200
<v Speaker 8>found some stories from like I don't want to say's

0:12:52.200 --> 0:12:55.600
<v Speaker 8>like twenty seventeen where like hopping to posts interviewed sex

0:12:55.679 --> 0:12:57.920
<v Speaker 8>therapists about why people.

0:12:57.640 --> 0:12:59.200
<v Speaker 1>Are going on Twitter for porn.

0:12:59.240 --> 0:13:01.880
<v Speaker 8>So clearly this is a long standing practice for some people,

0:13:01.920 --> 0:13:04.800
<v Speaker 8>and I think that at least the stories I read

0:13:04.840 --> 0:13:08.840
<v Speaker 8>were suggesting that you can search for porn on X

0:13:09.559 --> 0:13:12.600
<v Speaker 8>in a way that makes it less obvious you're looking

0:13:12.679 --> 0:13:15.760
<v Speaker 8>for porn as opposed to going straight to pornhub or

0:13:15.880 --> 0:13:16.719
<v Speaker 8>porn website.

0:13:16.800 --> 0:13:20.520
<v Speaker 1>So maybe for some people that has appeal. There was a.

0:13:20.440 --> 0:13:25.160
<v Speaker 8>Recent number that came out showing that X had experienced

0:13:25.160 --> 0:13:28.680
<v Speaker 8>a growth in users who are like younger men in

0:13:28.720 --> 0:13:32.960
<v Speaker 8>their like late teens, early twenties, So maybe there I

0:13:32.960 --> 0:13:36.720
<v Speaker 8>don't know, there's there's fewer content moderation. Speech is getting

0:13:36.760 --> 0:13:39.720
<v Speaker 8>freer and freer every day on X. You know, maybe

0:13:39.760 --> 0:13:41.200
<v Speaker 8>people are noticing and looking at you more.

0:13:41.559 --> 0:13:45.880
<v Speaker 5>This friend is not Ted Cruz. So John, what in

0:13:46.120 --> 0:13:49.320
<v Speaker 5>general are you saying in your reporting on the proliferation

0:13:49.559 --> 0:13:50.760
<v Speaker 5>of pornography on X?

0:13:51.120 --> 0:13:54.440
<v Speaker 3>Well, the existence of porn that people are like looking

0:13:54.480 --> 0:13:58.120
<v Speaker 3>for on purpose is kind of the crucial context here,

0:13:58.640 --> 0:14:00.880
<v Speaker 3>Like Rayham was saying, Twitter has been a kind of

0:14:00.920 --> 0:14:03.400
<v Speaker 3>a porn friendly site for a long time. It's a

0:14:03.440 --> 0:14:07.200
<v Speaker 3>good place, you know, it's a great place. It's a

0:14:07.200 --> 0:14:10.200
<v Speaker 3>good place to find adult content, like mixed in with

0:14:10.320 --> 0:14:12.959
<v Speaker 3>regular stuff in a way that almost no other social

0:14:12.960 --> 0:14:15.640
<v Speaker 3>networks Aren'tumblr used to be like this, and it was

0:14:15.840 --> 0:14:18.360
<v Speaker 3>presented a whole range of problems for them that they

0:14:18.440 --> 0:14:22.800
<v Speaker 3>ultimately decided we're not really tolerable, and so Twitter has

0:14:22.840 --> 0:14:26.120
<v Speaker 3>remained so sort of open to adult content.

0:14:26.720 --> 0:14:29.640
<v Speaker 5>Truly, more so than other social media.

0:14:29.440 --> 0:14:33.240
<v Speaker 3>Much more than for example, metas products, Facebook and Instagram

0:14:33.320 --> 0:14:37.800
<v Speaker 3>have very strict rules about nudity, Whereas on Twitter before

0:14:37.840 --> 0:14:40.920
<v Speaker 3>Elon Musk bought it, After Elon Musk bought it, you

0:14:41.080 --> 0:14:45.080
<v Speaker 3>could enter a variety of terms, some of them pretty benign,

0:14:45.160 --> 0:14:50.200
<v Speaker 3>into the search bar and find like hardcore pornography, people

0:14:50.240 --> 0:14:54.080
<v Speaker 3>having sex on video, just right there in the feed.

0:14:54.200 --> 0:14:56.840
<v Speaker 3>So it's like, oh, that's always been a pretty remarkable

0:14:56.920 --> 0:15:00.360
<v Speaker 3>difference between between Twitter and NX and most of the

0:15:00.360 --> 0:15:03.000
<v Speaker 3>other mainstream social platforms. Not something you'll see on TikTok

0:15:03.000 --> 0:15:06.200
<v Speaker 3>for example, right, And this also brings with it a

0:15:06.240 --> 0:15:11.040
<v Speaker 3>whole range of spam challenges because like the adult you know,

0:15:11.080 --> 0:15:14.760
<v Speaker 3>online adult entertainment industry, porn, and then the ways that

0:15:14.800 --> 0:15:16.720
<v Speaker 3>overlaps with sex work. All of that brings with it

0:15:16.800 --> 0:15:20.920
<v Speaker 3>businesses that are you know, trying to exploit people from

0:15:21.240 --> 0:15:25.640
<v Speaker 3>the sort of you know, periphery of the web where

0:15:25.680 --> 0:15:27.480
<v Speaker 3>they've been relegated for most of this time. So you

0:15:27.480 --> 0:15:29.520
<v Speaker 3>get a lot of spammers, you get a lot of scammers,

0:15:29.840 --> 0:15:31.400
<v Speaker 3>and you get a lot of people who see this

0:15:31.520 --> 0:15:36.480
<v Speaker 3>open vector, this forum for like posting adult content, promoting

0:15:36.480 --> 0:15:39.440
<v Speaker 3>adult content, trying to like do what they can to

0:15:39.840 --> 0:15:41.360
<v Speaker 3>you know, scrape together some business.

0:15:41.600 --> 0:15:46.040
<v Speaker 5>Yeah, your piece really dug into those spammers and some

0:15:46.120 --> 0:15:49.960
<v Speaker 5>of the spam tactics they used at to be that

0:15:50.000 --> 0:15:54.560
<v Speaker 5>have gone viral frankly for that matter on X, What

0:15:54.800 --> 0:15:58.880
<v Speaker 5>more or less is the model and how does it work?

0:15:58.920 --> 0:16:01.720
<v Speaker 5>This model that seeks to hap into the fact that

0:16:01.880 --> 0:16:04.240
<v Speaker 5>just generally speaking, there's a lot of nudity and porn

0:16:04.280 --> 0:16:04.680
<v Speaker 5>on X.

0:16:05.280 --> 0:16:08.720
<v Speaker 3>So the thing that went viral on X is this

0:16:08.800 --> 0:16:11.880
<v Speaker 3>sort of like funny construction that was showing up in

0:16:11.920 --> 0:16:13.840
<v Speaker 3>the replies to all kinds of posts. It would be

0:16:13.880 --> 0:16:16.160
<v Speaker 3>a piece of history trivia, a piece of breaking news.

0:16:16.920 --> 0:16:18.840
<v Speaker 3>It would be an argument between two people that had

0:16:18.840 --> 0:16:21.800
<v Speaker 3>gotten really intense, and then here comes a spammer in

0:16:21.920 --> 0:16:25.680
<v Speaker 3>big block texts spaced out with weird symbols saying pussy

0:16:25.720 --> 0:16:27.480
<v Speaker 3>in bio or some variations.

0:16:27.480 --> 0:16:29.680
<v Speaker 5>And that's not and it was not germane to the conversation,

0:16:30.160 --> 0:16:30.680
<v Speaker 5>not at all.

0:16:31.000 --> 0:16:34.840
<v Speaker 3>I mean, you know, sometimes incidentally it is that goes

0:16:34.880 --> 0:16:37.800
<v Speaker 3>viral on its own, but this was it was so

0:16:38.040 --> 0:16:40.640
<v Speaker 3>visible that it really became a meme. And this is

0:16:40.680 --> 0:16:42.960
<v Speaker 3>a meme that is sort of like getting extra traction

0:16:43.120 --> 0:16:47.280
<v Speaker 3>because of the platform stance on spam, and in particular

0:16:47.320 --> 0:16:51.680
<v Speaker 3>because of Elon Musk's like complete fixation on bots and spam.

0:16:51.960 --> 0:16:55.840
<v Speaker 3>It's like, you know, in the lead up to the purchase,

0:16:55.920 --> 0:16:58.960
<v Speaker 3>through the purchase, after the purchase, it's just this constant

0:16:59.280 --> 0:17:01.880
<v Speaker 3>drum beat of like, we must stop the spammers. The

0:17:01.920 --> 0:17:04.879
<v Speaker 3>bots are you know, ruining the site.

0:17:04.920 --> 0:17:08.400
<v Speaker 5>You actually opened your piece with those words. If our

0:17:08.520 --> 0:17:11.480
<v Speaker 5>Twitter bid succeeds, he wrote back in May of twenty

0:17:11.520 --> 0:17:15.959
<v Speaker 5>twenty two, we will defeat the spam bots or die trying.

0:17:16.480 --> 0:17:18.800
<v Speaker 3>That doesn't include the third option, which is just like

0:17:18.920 --> 0:17:22.080
<v Speaker 3>everyone gets kind of riled up and is like confused.

0:17:21.680 --> 0:17:22.280
<v Speaker 5>About what you know.

0:17:22.320 --> 0:17:25.720
<v Speaker 3>It's just like this, it's such a funny thing. It's

0:17:25.720 --> 0:17:29.879
<v Speaker 3>such an undeniably funny like turn in this saga of

0:17:29.920 --> 0:17:33.280
<v Speaker 3>the you know, Elon Musk Twitter acquisition and that it

0:17:33.640 --> 0:17:35.399
<v Speaker 3>just it sort of had to go viral, and it

0:17:35.440 --> 0:17:37.840
<v Speaker 3>sort of stayed viral, helped by the fact that these

0:17:37.840 --> 0:17:41.280
<v Speaker 3>bots are still around. This started happening early this year

0:17:41.840 --> 0:17:45.080
<v Speaker 3>and it has sort of remained pretty visible.

0:17:45.160 --> 0:17:47.560
<v Speaker 5>So the pib bots, as we will refer to them

0:17:47.600 --> 0:17:51.880
<v Speaker 5>henceforth in this family friendly show, are still as prevalent

0:17:51.880 --> 0:17:52.240
<v Speaker 5>as ever.

0:17:52.720 --> 0:17:54.920
<v Speaker 3>It sort of varies day to day, like they're clearly

0:17:55.200 --> 0:17:58.040
<v Speaker 3>working really hard to stop them. Some days I won't

0:17:58.040 --> 0:18:01.360
<v Speaker 3>really see anything, other days I'll see them constantly. They are,

0:18:01.440 --> 0:18:03.439
<v Speaker 3>i should say, evolving a little bit. You've got a

0:18:03.440 --> 0:18:06.960
<v Speaker 3>whole bunch of different funny constructions that they're using. The

0:18:07.000 --> 0:18:10.680
<v Speaker 3>one that I've seen a lot lately is my crazy

0:18:10.720 --> 0:18:13.679
<v Speaker 3>boobs in Bio, which is like a you know, completely

0:18:13.720 --> 0:18:15.120
<v Speaker 3>normal thing that people say.

0:18:15.160 --> 0:18:18.520
<v Speaker 5>It's this human evolutions as right in front of our eye.

0:18:18.600 --> 0:18:21.919
<v Speaker 3>You get fasaurus versions of that too that are absolutely delightful.

0:18:23.200 --> 0:18:26.240
<v Speaker 3>But anyway, it's yeah, it's it's very very visible, and

0:18:26.440 --> 0:18:29.719
<v Speaker 3>what it is is a pretty basic, like scale based

0:18:29.760 --> 0:18:32.840
<v Speaker 3>spam tactic. What was remarkable about this is that it

0:18:33.280 --> 0:18:38.439
<v Speaker 3>exists to promote very old fashioned, extremely unsavory flirt sites,

0:18:38.560 --> 0:18:41.480
<v Speaker 3>dating sites where users are funneled through a whole bunch

0:18:41.480 --> 0:18:44.560
<v Speaker 3>of pages. They sort of become like disoriented and lost,

0:18:45.000 --> 0:18:49.879
<v Speaker 3>and then they get somewhere that says they're you know, hot, local, hot, single,

0:18:49.920 --> 0:18:53.240
<v Speaker 3>local people who want to chat with you and maybe

0:18:53.240 --> 0:18:56.119
<v Speaker 3>meet up. You enter your credit card, you end up

0:18:56.160 --> 0:18:58.800
<v Speaker 3>chatting with an operator who lives in a different country.

0:18:59.080 --> 0:19:02.320
<v Speaker 3>That operator maybe getting a cut of what you're paying

0:19:02.320 --> 0:19:04.320
<v Speaker 3>this company. They might not be getting a cut, and

0:19:04.359 --> 0:19:07.360
<v Speaker 3>they might be under some terrible labor arrangement, or they

0:19:07.400 --> 0:19:11.360
<v Speaker 3>might be you know, scraping your personal information for things

0:19:11.400 --> 0:19:13.720
<v Speaker 3>that they can use to then scam you via text

0:19:13.720 --> 0:19:16.080
<v Speaker 3>message or a telegram. They might be asking for nudes

0:19:16.080 --> 0:19:19.119
<v Speaker 3>from you. So it's a pretty dark path that you

0:19:19.160 --> 0:19:21.320
<v Speaker 3>can follow. You if you actually click through these languages.

0:19:21.520 --> 0:19:23.320
<v Speaker 5>You did, God bless you. You did it for all

0:19:23.320 --> 0:19:23.800
<v Speaker 5>of us.

0:19:23.640 --> 0:19:25.880
<v Speaker 3>So we don't have to Yeah, and you know, I'm

0:19:25.880 --> 0:19:28.800
<v Speaker 3>getting married in two months.

0:19:32.000 --> 0:19:36.440
<v Speaker 5>So max is this just a case of Elon Musk

0:19:36.520 --> 0:19:39.280
<v Speaker 5>the true libertarian, just saying, heck, let's just give the

0:19:39.320 --> 0:19:42.440
<v Speaker 5>people what they want. They want sex and nudity. Knock

0:19:42.480 --> 0:19:43.320
<v Speaker 5>they can knock themselves.

0:19:43.400 --> 0:19:45.520
<v Speaker 2>Well. I mean, I think it's fair to say, based

0:19:45.560 --> 0:19:49.640
<v Speaker 2>on like Elon's tweets and like his fondness for risque memes,

0:19:49.920 --> 0:19:52.320
<v Speaker 2>that this is a man who's not totally averse to

0:19:52.840 --> 0:19:57.000
<v Speaker 2>you know, online pornography and so I and also he's

0:19:57.080 --> 0:20:01.280
<v Speaker 2>of course a libertarian and somebody who I think genuinely

0:20:01.600 --> 0:20:02.520
<v Speaker 2>like thinks.

0:20:02.240 --> 0:20:03.680
<v Speaker 5>This stuff should probably be okay.

0:20:04.040 --> 0:20:06.040
<v Speaker 2>But that, of course is at odds with the fact

0:20:06.480 --> 0:20:10.440
<v Speaker 2>that trying to run a large media company with major advertisers,

0:20:10.440 --> 0:20:13.560
<v Speaker 2>which is what ostensibly he's trying to do, you cannot

0:20:13.600 --> 0:20:15.359
<v Speaker 2>have a lot of porn. And there's a reason why,

0:20:15.600 --> 0:20:19.240
<v Speaker 2>you know, pharmaceutical companies don't really want to sell their

0:20:19.560 --> 0:20:23.960
<v Speaker 2>you know, heart disease medications against porn. Even Viagra does

0:20:24.000 --> 0:20:26.560
<v Speaker 2>not want that. Nobody wants it if you're like a

0:20:26.560 --> 0:20:29.600
<v Speaker 2>big advertiser. Disney does not want to sell Disney Plus

0:20:29.680 --> 0:20:34.200
<v Speaker 2>subscriptions against hardcore pornography, against pib or whatever. And lots

0:20:34.240 --> 0:20:37.119
<v Speaker 2>of companies wrestle with this there's a reason only fans,

0:20:37.480 --> 0:20:40.880
<v Speaker 2>which you know hosts is basically an adult content business.

0:20:40.960 --> 0:20:41.919
<v Speaker 7>There's a reason why.

0:20:41.840 --> 0:20:44.560
<v Speaker 2>When they talk about what they do, they don't say, yeah,

0:20:44.560 --> 0:20:46.640
<v Speaker 2>we're a great place to find adult content. They talk

0:20:46.680 --> 0:20:49.120
<v Speaker 2>about the cooking shows and the you know, and other

0:20:49.160 --> 0:20:53.119
<v Speaker 2>stuff like advertisers don't like this, and you know, this

0:20:53.280 --> 0:20:56.119
<v Speaker 2>is just like a way in which Elon Musk's worldview

0:20:56.160 --> 0:20:58.719
<v Speaker 2>is at odds with the realities of the media business.

0:20:59.040 --> 0:21:01.560
<v Speaker 2>I think there's all so an extent to which, as

0:21:01.640 --> 0:21:04.159
<v Speaker 2>John's saying, you know, he talked about getting rid of

0:21:04.160 --> 0:21:06.879
<v Speaker 2>these spambots, but clearly it's gone the other way. And

0:21:06.920 --> 0:21:08.920
<v Speaker 2>it's not just it's not just the porn stuff, right

0:21:09.080 --> 0:21:12.760
<v Speaker 2>this The dynamics around these PIB accounts are very very

0:21:12.760 --> 0:21:16.720
<v Speaker 2>similar to cryptosam scammers. Like you'll often see somebody post

0:21:16.800 --> 0:21:19.280
<v Speaker 2>something about their you know, their late you know, uncle

0:21:19.359 --> 0:21:21.679
<v Speaker 2>dying or something, and you have a PIB and then

0:21:21.720 --> 0:21:24.320
<v Speaker 2>you have someone being like, check out pepe coin. It's

0:21:24.359 --> 0:21:25.560
<v Speaker 2>it's pumping right now, you know.

0:21:25.600 --> 0:21:27.840
<v Speaker 3>And if you get the AI you know, the AI

0:21:27.960 --> 0:21:30.880
<v Speaker 3>scam spam, then you've got the trifecta. It's something.

0:21:31.480 --> 0:21:33.719
<v Speaker 8>But also you guys, like I think part of this

0:21:33.880 --> 0:21:36.919
<v Speaker 8>is that like x is completely unable to moderate itself,

0:21:36.960 --> 0:21:39.960
<v Speaker 8>Like who could forget when there was deep fake porn

0:21:40.000 --> 0:21:44.040
<v Speaker 8>of Taylor Swift? Like yeah, you know, the God of America.

0:21:44.560 --> 0:21:47.960
<v Speaker 8>Like Twitter just simply deleted the ability to search for

0:21:48.040 --> 0:21:51.240
<v Speaker 8>the words Taylor Swift, Like they couldn't moderate.

0:21:51.320 --> 0:21:53.479
<v Speaker 5>They sort of panicked and they didn't know what they

0:21:53.520 --> 0:21:54.320
<v Speaker 5>hit the new keys.

0:21:54.560 --> 0:21:56.960
<v Speaker 8>For days, you couldn't search for one of the most

0:21:56.960 --> 0:21:58.680
<v Speaker 8>popular search terms on a platform.

0:21:58.680 --> 0:22:01.440
<v Speaker 3>Well, that's that's that's worth it sizing like this isn't

0:22:01.480 --> 0:22:04.320
<v Speaker 3>just a funny, you know, meme spam thing that's showing

0:22:04.359 --> 0:22:06.280
<v Speaker 3>up in a bunch of replies. You can't really search

0:22:06.320 --> 0:22:08.600
<v Speaker 3>for very much these days without seeing something that you

0:22:08.640 --> 0:22:09.359
<v Speaker 3>don't want to see.

0:22:09.400 --> 0:22:11.120
<v Speaker 5>Well, this is what Rayhon keeps alleging.

0:22:11.400 --> 0:22:13.439
<v Speaker 1>I mean meetings I have.

0:22:13.640 --> 0:22:16.600
<v Speaker 8>I have made it clear that while I don't follow

0:22:16.960 --> 0:22:21.480
<v Speaker 8>proactively any sex workers, I see a lot of porn

0:22:21.520 --> 0:22:23.960
<v Speaker 8>in my feet and I was looking into it this morning,

0:22:23.960 --> 0:22:25.640
<v Speaker 8>and a lot There are a lot of people commenting

0:22:25.640 --> 0:22:29.040
<v Speaker 8>on Reddit and other places who are like suggested tweets

0:22:29.040 --> 0:22:32.159
<v Speaker 8>now include spot like before you follow tab is filled

0:22:32.200 --> 0:22:32.960
<v Speaker 8>with pornography.

0:22:33.080 --> 0:22:37.480
<v Speaker 5>So John post the gutting of X's content moderation team.

0:22:37.720 --> 0:22:43.399
<v Speaker 5>How reportable is this stuff and how easy or difficult

0:22:43.440 --> 0:22:44.800
<v Speaker 5>is it to get it filtered out?

0:22:45.359 --> 0:22:47.480
<v Speaker 3>A lot of the same basic mechanisms are in place.

0:22:47.560 --> 0:22:50.520
<v Speaker 3>You flag content, it gets reviewed. Mostly that's not how

0:22:50.520 --> 0:22:52.240
<v Speaker 3>the spam is getting dealt with. This is getting dealt

0:22:52.280 --> 0:22:55.320
<v Speaker 3>with sort of invisibly, with a lot of like behind

0:22:55.320 --> 0:22:59.600
<v Speaker 3>the scenes algorithmic identification and then a bunch of contractors

0:22:59.720 --> 0:23:03.560
<v Speaker 3>feel are now, who are you know, basically looking at

0:23:03.600 --> 0:23:07.320
<v Speaker 3>the outputs from these you know, algorithms and saying, okay,

0:23:07.320 --> 0:23:09.400
<v Speaker 3>this is actually spam. We should identify this and get

0:23:09.440 --> 0:23:11.280
<v Speaker 3>rid of this. So they're doing, you know, they're doing

0:23:11.280 --> 0:23:13.080
<v Speaker 3>the same stuff that every other platform is doing. It

0:23:13.119 --> 0:23:15.720
<v Speaker 3>just seems that they're doing it not as effectively, and

0:23:16.200 --> 0:23:19.440
<v Speaker 3>arguably they're facing a challenge that is a little bit

0:23:20.520 --> 0:23:24.000
<v Speaker 3>more complicated than some of the other platforms just because

0:23:24.040 --> 0:23:27.119
<v Speaker 3>of what Twitter is. It's it has a really like

0:23:27.280 --> 0:23:29.720
<v Speaker 3>thorough connection to the outside web that a lot of

0:23:29.800 --> 0:23:33.800
<v Speaker 3>other platforms don't. Instagram isn't all about links, and so

0:23:33.840 --> 0:23:36.680
<v Speaker 3>you don't have this constant interface with like a world

0:23:36.720 --> 0:23:40.399
<v Speaker 3>where anything could be happening. Just on the issue of

0:23:40.440 --> 0:23:43.199
<v Speaker 3>only fans alone, that creates a huge problem because you know,

0:23:43.720 --> 0:23:46.840
<v Speaker 3>you have a lot of onlyfan scammers, who are you know,

0:23:47.080 --> 0:23:51.119
<v Speaker 3>running these agencies with with operators and chatbots and all

0:23:51.119 --> 0:23:53.919
<v Speaker 3>this stuff. But as far as Twitter can tell, the

0:23:54.000 --> 0:23:57.159
<v Speaker 3>link to the only Fans profile is legitimate. You know,

0:23:57.520 --> 0:23:59.399
<v Speaker 3>the user then follows it and then they're sort of

0:23:59.480 --> 0:24:01.719
<v Speaker 3>in a world of scans. And so I do think

0:24:01.800 --> 0:24:04.960
<v Speaker 3>that x deserves a little bit of recognition for the

0:24:05.359 --> 0:24:06.320
<v Speaker 3>scale of the challenge.

0:24:06.560 --> 0:24:09.080
<v Speaker 2>One thing that's kind of funny and almost redeeming about

0:24:09.080 --> 0:24:11.440
<v Speaker 2>this story is that the PIB thing has now become

0:24:11.480 --> 0:24:13.439
<v Speaker 2>a meme. I think your story had this tweet It

0:24:13.480 --> 0:24:16.280
<v Speaker 2>was like Merrion Webster's Dictionary did a tweet that it

0:24:16.320 --> 0:24:18.760
<v Speaker 2>was like words in bio. You know, it's become like

0:24:19.200 --> 0:24:22.080
<v Speaker 2>it just like a Twitter are just swallowed, like is

0:24:22.080 --> 0:24:24.639
<v Speaker 2>a culture unto itself and in some ways has been

0:24:24.640 --> 0:24:29.119
<v Speaker 2>able to absorb this kind of scammy, sad phenomenon and

0:24:29.720 --> 0:24:31.440
<v Speaker 2>turn it into its own thing, And in a way

0:24:31.440 --> 0:24:32.479
<v Speaker 2>that's redeeming almost.

0:24:32.480 --> 0:24:35.680
<v Speaker 3>When Xai announced that they were, you know, revealing a

0:24:35.720 --> 0:24:37.879
<v Speaker 3>lot of details about how groc works and how the

0:24:37.920 --> 0:24:41.720
<v Speaker 3>underlying model works, they posted a PIB meme. They said

0:24:41.720 --> 0:24:44.359
<v Speaker 3>weights in bio from the official Grock account, Like this

0:24:44.400 --> 0:24:45.480
<v Speaker 3>is they're not even They're like.

0:24:45.480 --> 0:24:46.960
<v Speaker 5>They're leaning into it.

0:24:46.960 --> 0:24:48.040
<v Speaker 3>It's like they have no choice.

0:24:48.359 --> 0:24:50.240
<v Speaker 2>I do think part of the issue here is that,

0:24:50.320 --> 0:24:54.840
<v Speaker 2>like fewer people are using Twitter right now, notwithstanding you

0:24:54.880 --> 0:24:57.600
<v Speaker 2>know those who are going there for porn, and then

0:24:57.640 --> 0:25:00.159
<v Speaker 2>you have the porn scammers who are riding on top

0:25:00.160 --> 0:25:01.959
<v Speaker 2>of that. But all of this is kind of a

0:25:01.960 --> 0:25:05.040
<v Speaker 2>problem when your numbers are going down generally, because then

0:25:05.080 --> 0:25:07.399
<v Speaker 2>it gets hard to like you don't really want to

0:25:07.400 --> 0:25:09.840
<v Speaker 2>delete those those accounts. You could want to keep the

0:25:09.880 --> 0:25:10.720
<v Speaker 2>numbers moving the right time.

0:25:10.720 --> 0:25:13.119
<v Speaker 5>Correct. So is there a school thought inside of X

0:25:13.160 --> 0:25:16.200
<v Speaker 5>that says, hey, when given lemons, let's make lemonade, let's

0:25:16.280 --> 0:25:20.439
<v Speaker 5>lean into as part of our new business model pushing

0:25:20.440 --> 0:25:21.959
<v Speaker 5>adult content on X.

0:25:22.560 --> 0:25:23.840
<v Speaker 1>Well, there were stories.

0:25:23.560 --> 0:25:26.080
<v Speaker 8>Last week though that X was going to be testing

0:25:26.480 --> 0:25:29.680
<v Speaker 8>some kind of adult content feature. I mean, it has

0:25:29.800 --> 0:25:33.159
<v Speaker 8>rolled out for the past year or so, various like

0:25:33.240 --> 0:25:37.000
<v Speaker 8>paid mechanisms, including like I think something about like paid video.

0:25:37.680 --> 0:25:42.359
<v Speaker 8>Although if X really wanted to make money off of

0:25:42.400 --> 0:25:44.960
<v Speaker 8>all the porn on its site, there's like a lot

0:25:44.960 --> 0:25:46.120
<v Speaker 8>of reasons why that would.

0:25:45.880 --> 0:25:50.840
<v Speaker 3>Be difficult, right, They tried before the acquisition to develop

0:25:52.200 --> 0:25:57.480
<v Speaker 3>basically a competitive set of features for OnlyFans. They were

0:25:57.720 --> 0:26:01.720
<v Speaker 3>talking about kind of like a Patreon's but clearly influenced

0:26:01.720 --> 0:26:07.000
<v Speaker 3>by OnlyFans fan follower model that fell apart. I remember

0:26:07.040 --> 0:26:08.879
<v Speaker 3>it was I believe the Verge that reported on this,

0:26:09.000 --> 0:26:13.600
<v Speaker 3>in part because of concerns about c SAM and you know,

0:26:13.680 --> 0:26:18.880
<v Speaker 3>illegal pornography and non contentional content, and this was something

0:26:18.920 --> 0:26:20.920
<v Speaker 3>that they figured out pretty quickly with a like quick

0:26:20.960 --> 0:26:22.719
<v Speaker 3>red teaming of the feature. They were like, oh, this

0:26:22.760 --> 0:26:25.280
<v Speaker 3>is going to be really really hard. They probably were

0:26:25.280 --> 0:26:27.520
<v Speaker 3>also aware that OnlyFans has a lot of trouble with this.

0:26:27.920 --> 0:26:30.920
<v Speaker 3>But yeah, now fast forward a little bit. Those features

0:26:30.920 --> 0:26:34.800
<v Speaker 3>were mostly built OnlyFans. Spam along with the PIV spam

0:26:35.000 --> 0:26:39.400
<v Speaker 3>is absolutely overwhelming the platform. So they've got this big opportunity.

0:26:39.440 --> 0:26:41.480
<v Speaker 3>They see that it feels a little bit out of reach.

0:26:41.600 --> 0:26:44.880
<v Speaker 3>They've got that competitor and only fans that is kind

0:26:44.880 --> 0:26:49.400
<v Speaker 3>of abusing their platform, albeit indirectly through third parties, and

0:26:49.640 --> 0:26:51.760
<v Speaker 3>you know, probably getting a lot of benefit out of

0:26:51.840 --> 0:26:54.600
<v Speaker 3>what X is doing. It's got to be kind of frustrating.

0:26:54.520 --> 0:26:58.240
<v Speaker 5>Right because, as you said, it's simultaneously overwhelming the site

0:26:58.440 --> 0:27:01.720
<v Speaker 5>and driving away a tizers who would otherwise be there,

0:27:01.760 --> 0:27:03.919
<v Speaker 5>but at the same time they can't monetize it in

0:27:03.960 --> 0:27:04.359
<v Speaker 5>a way.

0:27:04.720 --> 0:27:10.439
<v Speaker 4>I mean, the winners really are my friends, right, my

0:27:10.560 --> 0:27:15.560
<v Speaker 4>good friends who are now able to see more free

0:27:15.560 --> 0:27:18.399
<v Speaker 4>porn that X cannot control at all.

0:27:18.520 --> 0:27:21.159
<v Speaker 5>And like, I think it was a big tal in

0:27:21.240 --> 0:27:23.240
<v Speaker 5>hindsight when he changed the name of the company to

0:27:23.520 --> 0:27:27.639
<v Speaker 5>X and had quite properly appreciated it. So John, Indeed,

0:27:27.680 --> 0:27:29.840
<v Speaker 5>when you drilled all the way down and you click through,

0:27:29.880 --> 0:27:31.639
<v Speaker 5>and you click through, and you know you got the

0:27:31.680 --> 0:27:34.040
<v Speaker 5>pib spam and you followed it all the way to

0:27:34.080 --> 0:27:37.360
<v Speaker 5>its logical conclusion, you found that I think it took

0:27:37.440 --> 0:27:40.560
<v Speaker 5>you to a link called Provocative Neighbors, which in turn

0:27:40.720 --> 0:27:42.520
<v Speaker 5>is run by a Dutch company.

0:27:42.640 --> 0:27:45.320
<v Speaker 3>Yeah, this is like normally you can't figure out who's

0:27:45.480 --> 0:27:48.120
<v Speaker 3>running these kinds of sites. You know, it's pretty well

0:27:48.119 --> 0:27:53.320
<v Speaker 3>concealed through anonymous domain registrars and all this stuff. One

0:27:53.320 --> 0:27:55.919
<v Speaker 3>of the sites that you end up at was you know,

0:27:56.800 --> 0:28:00.439
<v Speaker 3>pretty candidate about what they do and who runs them.

0:28:00.480 --> 0:28:05.200
<v Speaker 3>And it was a small operation called Meteor Interactive run

0:28:05.200 --> 0:28:09.080
<v Speaker 3>out of the Netherlands that on their website claims to

0:28:09.080 --> 0:28:12.760
<v Speaker 3>offer payment solutions for a variety of things, but mostly

0:28:12.800 --> 0:28:16.359
<v Speaker 3>adult sites, and it appears as though they're running a

0:28:16.400 --> 0:28:19.359
<v Speaker 3>network of these flirt sites or dating sites that wrote

0:28:19.400 --> 0:28:24.080
<v Speaker 3>people into these arrangements where you're chatting with fake personas.

0:28:24.160 --> 0:28:26.240
<v Speaker 3>This is all explained in the terms of service on

0:28:26.280 --> 0:28:28.560
<v Speaker 3>their website. I tried to pull some records on them

0:28:28.720 --> 0:28:32.119
<v Speaker 3>there as of a few years ago, relatively small, a

0:28:32.200 --> 0:28:36.320
<v Speaker 3>few hundred thousand euros in revenue per year. They are

0:28:36.359 --> 0:28:39.080
<v Speaker 3>obviously one of many, but they are emblematic of the

0:28:39.160 --> 0:28:42.760
<v Speaker 3>type of operation that the PIB spam exists to support.

0:28:42.840 --> 0:28:45.640
<v Speaker 3>And so the fact that that is popping up on

0:28:46.040 --> 0:28:50.120
<v Speaker 3>x like that one of the world's most powerful and

0:28:50.360 --> 0:28:53.840
<v Speaker 3>one of the wealthiest people has declared war on spam

0:28:54.120 --> 0:28:58.280
<v Speaker 3>on his platform and is now being thwarted by like

0:28:58.760 --> 0:29:00.640
<v Speaker 3>totally third rate porn.

0:29:00.800 --> 0:29:04.520
<v Speaker 8>I mean, do we think that is he almost giving

0:29:04.600 --> 0:29:07.600
<v Speaker 8>up his war on spam? You know now that like

0:29:07.680 --> 0:29:10.840
<v Speaker 8>Grock is tweeting out these memes and like, you.

0:29:10.800 --> 0:29:15.080
<v Speaker 2>Know, it was really clear how committed he was to

0:29:15.160 --> 0:29:18.200
<v Speaker 2>the war on spam. He did as as Kurt Wagner

0:29:18.240 --> 0:29:21.840
<v Speaker 2>brought up several weeks ago, he was frustrated, I guess

0:29:21.840 --> 0:29:25.120
<v Speaker 2>from the spam replies he was personally getting. But you know,

0:29:25.160 --> 0:29:26.640
<v Speaker 2>a lot of that war on spam, you know, if

0:29:26.640 --> 0:29:29.360
<v Speaker 2>you if you remember Back was about trying to wiggle

0:29:29.400 --> 0:29:31.240
<v Speaker 2>his way out of the Twitter deal, right like, he

0:29:31.520 --> 0:29:35.080
<v Speaker 2>sort of cooked up the war on spam in part

0:29:35.400 --> 0:29:38.520
<v Speaker 2>at least because he realized that Twitter was was not

0:29:38.600 --> 0:29:40.160
<v Speaker 2>worth as much as as he.

0:29:40.760 --> 0:29:42.320
<v Speaker 5>Not worth forty four billion dollars.

0:29:42.360 --> 0:29:45.920
<v Speaker 2>Man, It's definitely not worth forty four billion dollars. If

0:29:45.960 --> 0:29:48.560
<v Speaker 2>a big part of the business is the business that

0:29:48.600 --> 0:29:50.960
<v Speaker 2>John's talking about, if you're in like the porn business,

0:29:51.200 --> 0:29:52.400
<v Speaker 2>you're basically cut.

0:29:52.240 --> 0:29:55.360
<v Speaker 7>Off from a big part of the normal, Like.

0:29:55.400 --> 0:29:58.080
<v Speaker 5>Financially, you become like a pariah state of sam.

0:29:58.120 --> 0:30:01.880
<v Speaker 2>And again, totally, you know, it is not compatible with

0:30:01.960 --> 0:30:04.560
<v Speaker 2>running a mass media company. It is not compatible with

0:30:04.640 --> 0:30:07.400
<v Speaker 2>running like a public company on a major exchange.

0:30:07.440 --> 0:30:10.160
<v Speaker 7>I mean, with that very small handful of exceptions.

0:30:10.280 --> 0:30:12.520
<v Speaker 5>So John, will we have you back in a year's

0:30:12.600 --> 0:30:16.360
<v Speaker 5>time to report about whatever the new PIB is at time?

0:30:16.920 --> 0:30:20.800
<v Speaker 5>Is X going to be more a wash and porn

0:30:20.960 --> 0:30:24.240
<v Speaker 5>or will they have figured finally the bots problem out?

0:30:24.400 --> 0:30:27.200
<v Speaker 3>I think one one way to make a guess about

0:30:27.240 --> 0:30:29.400
<v Speaker 3>that is to look at what's going on with like

0:30:29.560 --> 0:30:32.520
<v Speaker 3>the Blue checks and verification because to some extent, I

0:30:32.560 --> 0:30:37.480
<v Speaker 3>do think that current Twitter, current x leadership has kind

0:30:37.520 --> 0:30:42.160
<v Speaker 3>of given up on conventional like spam countermeasures. They're still

0:30:42.160 --> 0:30:43.800
<v Speaker 3>doing a lot of it. They have to, otherwise the

0:30:43.840 --> 0:30:46.720
<v Speaker 3>platform just wouldn't work. But all of Elon Musk's big

0:30:46.760 --> 0:30:49.560
<v Speaker 3>ideas about this are like, what if we charged people,

0:30:49.840 --> 0:30:54.240
<v Speaker 3>Like what if we emphasized our verified users that pay

0:30:54.400 --> 0:30:56.560
<v Speaker 3>over everyone else, And then what if beyond that we

0:30:56.640 --> 0:30:59.440
<v Speaker 3>experimented with charging people a dollar just to post anything

0:30:59.480 --> 0:31:02.640
<v Speaker 3>at all. It's it's a really like sort of pay

0:31:02.680 --> 0:31:06.800
<v Speaker 3>to speak model that does have like, you know, real

0:31:06.840 --> 0:31:10.120
<v Speaker 3>promise for ending spam in a narrow sense if it

0:31:10.200 --> 0:31:13.920
<v Speaker 3>just makes speech more expensive, but also blue check replies.

0:31:13.960 --> 0:31:16.520
<v Speaker 3>The things that Elon is seeing now every day as

0:31:16.560 --> 0:31:19.440
<v Speaker 3>he posts are kind of full of spam. It's just

0:31:19.480 --> 0:31:22.080
<v Speaker 3>like it's a spam on a different part of the spectrum.

0:31:22.120 --> 0:31:24.160
<v Speaker 3>It's a little more expensive to produce. A lot of

0:31:24.200 --> 0:31:26.360
<v Speaker 3>the bots that you see there are clearly using like

0:31:26.440 --> 0:31:29.920
<v Speaker 3>new large language models to produce convincing replies to posts.

0:31:30.200 --> 0:31:32.720
<v Speaker 3>The scams are a little more opaque. Some of them

0:31:32.760 --> 0:31:35.560
<v Speaker 3>are you know, are in startup mode, not totally monetized yet.

0:31:35.680 --> 0:31:37.960
<v Speaker 3>Some of them are just monetizing through the revenue share

0:31:38.040 --> 0:31:41.360
<v Speaker 3>platform on X, Like spam is this impossible problem that

0:31:41.400 --> 0:31:45.120
<v Speaker 3>plagues every public venue and a lot of private venues

0:31:45.320 --> 0:31:48.120
<v Speaker 3>on the web. And I think I think Elon is

0:31:48.160 --> 0:31:50.360
<v Speaker 3>still in this in this phase of thinking like there

0:31:50.440 --> 0:31:52.200
<v Speaker 3>might be a sort of magic bullet, there might be

0:31:52.240 --> 0:31:54.280
<v Speaker 3>this big innovative idea that no one else has tried.

0:31:55.080 --> 0:31:56.840
<v Speaker 3>And I think in a year, you know, he will

0:31:56.880 --> 0:32:01.120
<v Speaker 3>be whatever X looks like, he will remain quiet vexed

0:32:01.440 --> 0:32:01.800
<v Speaker 3>by this.

0:32:01.920 --> 0:32:05.960
<v Speaker 8>I mean, there's like this old chestnut that pornography is

0:32:06.000 --> 0:32:09.720
<v Speaker 8>always at the edge of innovation, Like that was true

0:32:09.960 --> 0:32:13.560
<v Speaker 8>in like times where like you know, filmmaking and video

0:32:14.200 --> 0:32:17.640
<v Speaker 8>recording became popular. That was true in the early Internet days.

0:32:17.680 --> 0:32:21.640
<v Speaker 8>Like I think that spam always finds a way, but

0:32:21.720 --> 0:32:24.239
<v Speaker 8>also like sex always finds a way, you know, And

0:32:24.280 --> 0:32:25.360
<v Speaker 8>so like brute.

0:32:25.080 --> 0:32:27.560
<v Speaker 1>Forcing these memes.

0:32:27.200 --> 0:32:29.520
<v Speaker 8>Is one way I think AI obviously is going to

0:32:29.600 --> 0:32:32.240
<v Speaker 8>present more and more opportunities.

0:32:32.440 --> 0:32:34.520
<v Speaker 2>Wait, are you saying, Rahan, that this is the leading

0:32:34.600 --> 0:32:39.280
<v Speaker 2>edge that we're going to follows. We're no, no, that,

0:32:39.440 --> 0:32:41.920
<v Speaker 2>like you know this, these this you know, huge amount

0:32:41.960 --> 0:32:43.720
<v Speaker 2>of porn on X is only the beginning for a

0:32:43.760 --> 0:32:46.040
<v Speaker 2>new wave of general content on X Maybe is the

0:32:46.040 --> 0:32:49.720
<v Speaker 2>rest of I mean, catch up with the I'm saying.

0:32:49.400 --> 0:32:52.680
<v Speaker 1>That the ex user base is you know, they're.

0:32:52.600 --> 0:32:57.000
<v Speaker 8>Growing demographic as young men. I'm saying that AI is

0:32:57.040 --> 0:33:01.640
<v Speaker 8>flooding the market, and whatever tools exist to defeat it,

0:33:01.720 --> 0:33:05.440
<v Speaker 8>I think are only matched by tools that will circumvent for.

0:33:05.440 --> 0:33:09.880
<v Speaker 5>Our PIB for what it's worth, will be pod in bio. Right,

0:33:11.040 --> 0:33:13.239
<v Speaker 5>all right, John, thank you very much for joining us.

0:33:13.240 --> 0:33:16.000
<v Speaker 5>This was great anytime, Mac great to be here.

0:33:16.400 --> 0:33:17.960
<v Speaker 1>Ray Hunt thanks.

0:33:24.520 --> 0:33:27.800
<v Speaker 5>This episode was produced by Stacy Wang, Naomi Shaven and

0:33:27.880 --> 0:33:32.120
<v Speaker 5>Rayhan Harmanci are senior editors. The idea for this show

0:33:32.640 --> 0:33:36.440
<v Speaker 5>also came from Rayhan Blake Maples handles engineering, and we

0:33:36.520 --> 0:33:41.240
<v Speaker 5>get special editing assistants from Jeff Grocott. Our supervising producer

0:33:41.280 --> 0:33:45.040
<v Speaker 5>is Magnus Hendrickson. The Elon Inc. Theme is written and

0:33:45.080 --> 0:33:50.280
<v Speaker 5>performed by Taka Yasuzawa and Alex Sugiura. Brendan Francis Newnham

0:33:50.400 --> 0:33:52.920
<v Speaker 5>is our executive producer, and Sage Bowman is ahead of

0:33:52.920 --> 0:33:57.520
<v Speaker 5>Bloomberg Podcasts. I'm David Papadopolis. If you have a minute,

0:33:57.800 --> 0:34:00.880
<v Speaker 5>rate and review our show, it'll help our listeners find

0:34:00.960 --> 0:34:02.240
<v Speaker 5>us see you next week.

0:34:11.400 --> 0:34:11.440
<v Speaker 2>M