Twitter has accused Microsoft (NASDAQ: MSFT) of improper usage of its data, according to a letter sent to Microsoft CEO Satya Nadella.
Within the letter, which was seen by the New York Times, Twitter claims that Microsoft breached their agreement, overused the data, failed to pay for its usage, and shared it with the US government without authorization. The letter hints at potential legal repercussions and the possibility of Twitter charging Microsoft for the data usage.
The letter, penned by Alex Spiro, Elon Musk’s personal lawyer, indicates that Microsoft’s violation of the agreement might have persisted for an extended duration. Elon Musk, the current owner of Twitter, has previously accused Microsoft of illicitly utilizing Twitter’s data to train its AI technologies and threatened legal action.
Under Musk’s leadership, Twitter has pursued monetization more aggressively. Musk acquired the social media platform last October for $44 billion. During his tenure, Twitter introduced new subscription services and other measures to increase revenue. These strategies were in response to Musk’s assertion of the platform’s heightened quest to raise capital and avert potential bankruptcy.
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Microsoft has refused to pay Twitter for its data, even going as far as to threaten removal of Twitter from its advertising platform. Musk, who was an early founder of the OpenAI, has accused Microsoft of controlling the company’s business decisions following its $13 billion investment in the startup. The letter reveals that Microsoft last year accessed Twitter’s data portal more than 780 million times to retrieve at least 26 billion tweets, exceeding the “reasonable” usage limit set by Twitter.
Twitter’s letter to Nadella demands adherence to its developer agreement, an inquiry into Microsoft’s data usage across eight apps, and a detailed report by June on the Twitter data in Microsoft’s possession, including its storage, usage, and any government access. Microsoft’s tools, such as Xbox, Bing, and other advertising and cloud computing services, have allegedly used Twitter’s data.
Information for this briefing was found via the NYT and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
