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X Revises Privacy Policy to Permit AI Training by Third Parties Using Its Data

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X is set to revise its privacy policy to introduce terms that permit the sharing of user data with third-party partners to facilitate the training of AI models. This updated policy, scheduled to come into effect on November 15, 2024, suggests a potential shift toward arrangements akin to those seen with Reddit, where external entities may pay for data licensing from X.

The revised policy features a new section entitled “third-party collaborators.” It states that, depending on user settings or if users choose to share their data, information may be shared with third parties. Should users not opt out, these third parties may utilize the data for independent purposes, such as training their AI models, in addition to the purposes outlined in X’s privacy policy.

While the policy outlines an opt-out ability, the process for opting out remains unclear. According to TechCrunch, the policy indicates that users can manage this through their settings menu; however, no specific opt-out control is currently evident. With the policy not yet in force, there remains a possibility for amendments. X has not provided any commentary on the matter.

If X proceeds with licensing its data to external companies, it could introduce a new revenue stream, especially significant in light of decreasing interest from major advertisers.

In addition to the privacy policy amendments, X is updating its terms of service with stricter penalties on entities engaged in mass “scraping” of tweets. Under a section titled “liquidated damages,” the company declares that anyone who views or accesses over one million posts per day will incur a penalty of $15,000.

Elon Musk, the owner of X, has previously expressed opposition to “scraping.” Last year, the company briefly restricted access to tweets for users not logged in, a measure Musk attributed to combating data scraping. Moreover, Musk placed X’s API behind a paywall, significantly limiting researchers’ ability to analyze activity on the platform. Furthermore, he has cited scraping concerns as grounds for legal actions against organizations investigating hate speech and other issues on X.

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