On Monday, X Corp, led by Elon Musk, filed a lawsuit against nonprofit Media Matters, alleging that it drove advertisers away from the platform, previously known as Twitter, by portraying it as having anti-Semitic content.
The lawsuit, filed in a US federal court in Texas, accuses Media Matters of manipulating the algorithm to make it appear as if the organization wanted to view both hateful content and content from large advertisers.
Last week, prominent brands such as Apple, Comcast, NBCUniversal, and IBM paused advertising on X after Media Matters reported finding ads displayed with pro-Nazi content. This advertising exodus followed Musk’s endorsement of an anti-Semitic conspiracy theory.
Media Matters president Angelo Carusone dismissed the lawsuit as a “frivolous” attempt to silence critics, asserting that Media Matters stands by its reporting and anticipates success in court. The White House previously condemned Musk for his “abhorrent promotion” of anti-Semitism in response to his endorsement of an anti-Semitic conspiracy theory on X.
The lawsuit does not directly mention Musk’s endorsement but places blame for recent ad-related issues on Media Matters. X alleges that Media Matters manufactured images, presenting advertisers’ posts on X’s platform alongside Neo-Nazi and white-nationalist content, misleadingly suggesting that this was a typical experience for X users.
X contends that Media Matters manipulated its algorithm by following accounts known for extreme, fringe content and major brands, resulting in a feed designed to create problematic ad and content pairings that led to the alienation of advertisers. X is seeking unspecified cash damages and a court order for Media Matters to take down the report.
Since Musk took over Twitter, now rebranded as X, he has implemented changes such as reducing content moderation, reinstating accounts of previously banned extremists, and allowing users to purchase account verification. X executives stated that accounts highlighted by Media Matters will no longer be able to monetize ads, and the posts themselves will be labeled as “sensitive media.”
OpenAI Investors Consider Suing Board After Sudden Firing Of Sam Altman
In another development, following the removal of CEO Sam Altman and the potential for mass staff departures, some investors in OpenAI are reportedly considering legal action against the board, as per sources familiar with the matter.
Investors are exploring their options with legal advisors, raising concerns over potential catastrophic losses if the situation leads to the collapse of the prominent AI startup. Over 700 OpenAI employees have threatened to resign unless the board is replaced.
The unique aspect of this case is that OpenAI is controlled by its non-profit parent company, OpenAI Nonprofit, which aims to benefit humanity rather than OpenAI investors. Microsoft owns 49% of the company, while other investors and employees control 49%, with 2% owned by OpenAI’s nonprofit parent.
