Palantir Co-Founder Defends Elon Musk’s Twitter Acquisition, Calling it Crucial for Western "Preservation"
Palantir Technologies, Inc. co-founder, Joe Lonsdale, has voiced his support for Tesla and SpaceX CEO Elon Musk’s acquisition of Twitter, now rebranded as X. During an appearance on CNBC’s Squawk Box, Lonsdale argued that Musk’s purchase was a vital step towards preserving the values of the West.
Key Takeaways:
- Lonsdale argues that Musk’s purchase of Twitter was essential for protecting free speech in the West. He claims that without Musk’s intervention, the West would face "10x the threat."
- Lonsdale acknowledges the financial challenges faced by X since the acquisition, including a decline in revenue due to brands pulling their support. However, he attributes these losses to illegal coordination and attacks against the platform, describing these actions as "probably illegal."
- Lonsdale’s comments come amidst growing concerns about X’s future. Reports indicate a significant decline in advertising revenue and a potential for even more losses in 2025, leading to fears that Musk might sell more Tesla stock to cover the financial gap.
Musk’s Twitter Transformation: A Controversial Path
Elon Musk’s acquisition of Twitter, now X, has been met with both praise and criticism. Supporters, like Lonsdale, highlight the importance of free speech and the potential for X to become a platform for open and unfiltered dialogue. However, critics are concerned about the platform’s evolving content moderation policies and the potential for spread of misinformation.
The Financial Fallout
The financial landscape of X has become a major concern for investors and analysts. Despite Musk’s vision, the platform has experienced a significant drop in revenue, with a reported 84% decline since the acquisition. This has sparked fears among Tesla investors that Musk might need to sell more of his shares in the electric vehicle company to keep X afloat. The platform’s reliance on advertising revenue is also being questioned, with reports suggesting that advertisers are increasingly hesitant to spend money on X due to concerns about the platform’s direction.
A Platform for Anyone, or Just a Tiny Platform for Elites?
Meta Platforms Inc.’s president for global affairs, Nick Clegg, has characterized X as a "tiny" platform that allows for unfiltered expression, which he sees as a potential danger. Clegg argues that X has become a haven for individuals banned from other platforms, including Facebook and Instagram, who may participate in harmful activities. He points to the recent far-right protests in Britain as an example of how individuals previously banned from Meta platforms might use X to coordinate and spread extremist views.
Palantir’s Gains Amidst X’s Struggles
While X faces significant challenges, Palantir, the data analytics company co-founded by Joe Lonsdale, continues to thrive. The company recently received a $99.8 million contract from the U.S. Army, a development that propelled its stock price to a new 52-week high. This success highlights the distinct paths taken by Palantir and X in recent months.
The future of X remains uncertain. The platform continues to grapple with financial challenges, content moderation issues, and controversies related to free speech. Meanwhile, Palantir continues to secure lucrative government contracts, suggesting a stark contrast in fortunes and goals between the two companies. Whether X can find its footing amidst these challenges under Musk’s leadership remains to be seen.
