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X is set to implement significant changes to its privacy policy, particularly in how it handles user data. The new language, which takes effect on November 15, 2024, will allow X to share user data with third-party collaborators for the purpose of training AI models.

This development comes after Elon Musk’s company previously used X data to train its xAI Grok AI chatbot, leading to an investigation by the EU’s privacy regulators.

The company had not previously updated its policy to reflect the possibility of third-party data use until now.

X is reportedly exploring the option of licensing user data to AI companies as a new revenue stream, tapping into the ever-expanding demand for data to train machine learning models.

AI Models Data Training

The updated privacy policy from X introduces a new section titled “third-party collaborators.” According to this section:

“Depending on your settings, or if you decide to share your data, we may share or disclose your information with third parties. If you do not opt out, in some instances the recipients of the information may use it for their own independent purposes in addition to those stated in X’s Privacy Policy, including, for example, to train their artificial intelligence models, whether generative or otherwise.”

Although the policy mentions an opt-out option, it is unclear how users can actually opt out. As TechCrunch reports, the policy directs users to the settings menu, but no apparent controls for opting out of data sharing exist at the moment. The policy doesn't go into effect until November, so there is still potential for adjustments. X did not provide a comment on the matter when asked.

If X moves forward with licensing its data to other companies, it could create a new revenue source for the platform, which has seen diminishing interest from major advertisers.

Scraping Tweets

Another notable update is X's stricter penalties for scraping tweets. The company is revising its terms of service to impose significant fines on entities that scrape large numbers of tweets. Under a new section titled “liquidated damages,” the policy states that any person or entity that views or accesses more than a million posts per day will face a penalty of $15,000.

“Protecting our users’ data and our system resources is important to us. You further agree that, to the extent permitted by applicable law, if you violate the Terms, or you induce or facilitate others to do so, in addition to all other legal remedies available to us, you will be jointly and severally liable to us for liquidated damages as follows for requesting, viewing, or accessing more than 1,000,000 posts…in any 24-hour period - $15,000 USD per 1,000,000 posts.”

Elon Musk has long been vocal about his opposition to data scraping. Last year, Musk attempted to curb scraping by restricting tweet views for users not logged into the platform. He also moved X’s API behind a paywall, making it difficult for researchers to study the platform’s activity. Musk has even taken legal action against organizations accused of scraping data to analyze hate speech on the platform.

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OpenAI Efforts

The data-sharing policy echoes similar moves by media organizations earlier this year. In March, several news outlets signed contracts with OpenAI to provide French and Spanish news content to train the company's ChatGPT chatbot. This collaboration aims to increase the volume of training data used to enhance the AI models.