It seemed like a good match. Staid company meets indefatigable executive.
His early moves prompted a lot of pushback but were generally wise: Diversified away from ad revenue. Introduced breaking changes to accustom the user base to faster development. Cut costs they couldn’t afford by shuttering a data center. Shrunk a bloated team to die-hards via whaling-and-culling. Not least, open sourced some recommender system code, and largely solved the content moderation problem via Community Notes.
Individually, all good steps. Sure, there were many misfires along the way: the verification system, launch of Twitter Blue, and erratic public ideation of potential features.
But I am ready to declare the Musk&Twitter/X experiment a failure.
The crux of the matter is this: Twitter exists as part of an ecosystem. Elon has alienated a large part of that ecosystem, both in terms of creators and advertisers.
I don’t know whether the network effect will tip or the business will run out of cash first, but I am confident it will not grow enough to justify the investment.
Maybe I’m wrong. Maybe alternate revenue streams and the value of Twitter’s data for AI training will be enough to keep it viable.
But I’m just not seeing the path.