X (Twitter) API Pricing Shifts to Revenue Share Model

X Shifts to Revenue-Sharing Model for API Pricing

X (formerly Twitter) is altering its API pricing structure for enterprise users. The platform is moving away from its fixed-fee model to a revenue-sharing system. This change will impact top-tier enterprise API subscribers, who currently pay $42,000 per month for unlimited post access.

Starting July 1st, X will take a percentage of the revenue generated by projects using its data. The exact percentage remains undisclosed. This shift raises questions about how X will determine the value of its data contribution to various applications.

Impact on AI and Other Applications

This change has significant implications, particularly for AI and large language model (LLM) development. These projects rely heavily on large datasets like X's real-time conversation feed for training and improving their systems.

X data is also valuable for market research and tracking stock market trends. However, quantifying the value of X data in these contexts presents a challenge.

While the revenue-sharing model seems geared towards AI projects, X has also updated its Developer Agreement, seemingly restricting the use of its data for training AI models. TechCrunch reported on this update, which prohibits using the X API or content for training foundation or frontier models.

You shall not and you shall not attempt to (or allow others to) use the X API or X Content to fine-tune or train a foundation or frontier model.

This apparent contradiction raises questions about X's strategy. It suggests a focus on monetizing data for applications beyond AI, such as stock analytics, although the valuation method remains unclear.

Comparison with Other Platforms

Other social media platforms, like Meta, LinkedIn, TikTok, and Pinterest, have more restricted data access. Reddit, a comparable platform for conversational data, has also revised its API pricing in light of growing AI developer interest.

This move by X could impact enterprise users who may reconsider their reliance on X data depending on the final revenue share percentage. The lack of clarity surrounding this change and the conflicting signals regarding AI usage warrant further clarification from X.