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Bluesky engagement seems to be punching way above its weight

While Meta pushes every Instagram user to Threads and X tries to shore up a disintegrating user base, the plucky indie social network is picking up steam because people actually seem to be using it.

Jon Keegan

It’s a crazy time for news publishers trying to share their stories on social media. Just a few years ago, Twitter and Facebook were the two big platforms to reach a huge audience of social-media users. Since Elon Musk’s purchase of Twitter and transformation into X, a mass migration of users has fled the platform, and the social-media landscape has splintered into pieces. Now, in addition to X, there is Meta’s Threads and Twitter spin-off Bluesky. But something interesting is happening with audience engagement on Bluesky.

Among this group of text-based platforms, X is still a juggernaut, with 535 million users overall. Both Threads and Bluesky have been adding over a million users per day recently, but Threads’ 275 million users dwarfs Bluesky’s 23 million.

Neglecting news

Meta has stepped back from positioning itself as a source for news, and across Instagram, Facebook, and Threads, news content does not get the same algorithmic boost that it used to. Elon Musk this week appeared to confirm that posts on X with links off the platform are deprioritized, which he referred to as “lazy linking”:

But over on Bluesky, news has no such algorithmic speed bump. Users have been noticing that while Bluesky’s audience is a mere sliver of X and Threads’ user bases, it has been delivering as much engagement as the bigger platforms, and in some cases eclipsing them. “Engagement” refers to how much users interact with any given piece of content, measured in likes, replies, or reposting a story.

At least anecdotally, medium-sized to large publishers have begun to report that internal data gives Bluesky a pretty remarkable edge.

bluesky-bostonglobe.com
@mkarolian.bsky.social

Let’s take a look at how engagement varies from platform to platform for some big news stories published by The New York Times, CNN, and The Wall Street Journal. But first, let’s look at the audience size for these publishers on each platform.

Engagement per million users

We picked three recent stories that were at least a day old, covered a few different topics, and were published by the official accounts for The New York Times, The Wall Street Journal, and CNN on X, Threads, and Bluesky.

To control for the vastly different size of the platforms, we assigned each story an “engagement per million users” score:

(Likes + reposts + replies) / (total number of users on platform / 1 million) = engagement per million users.

Of course, there are some limitations to this analysis. This experiment doesn’t control for the many, many variables that affect user-engagement numbers. For example, it doesn’t account for the weight of each type of engagement (a “like” is easier than a reply). Also, this does not account for the different political vibe of each platform, which could lead to certain stories getting very different reactions on different platforms. But when you plot out these scores, you do see much more engagement for the same stories on Bluesky.

Getting a consistent measure of active users on each platform is tricky. Using monthly active users as the devisor in this equation would be a more accurate way to measure this engagement rate, but we don’t have hard numbers for each platform. X says that it has 535 million “global monetizable monthly active users,” but Musk recently said that there are about 300 million daily active users. So even if that is accurate, X numbers might look close to Threads, as Meta says they have 275 million monthly active users.

Given that these are still generally similar orders of magnitude to overall user numbers, plugging in those estimates doesn’t meaningfully change what the chart shows: Bluesky sure looks hot right now.

Another possible explanation is that because Bluesky is new, it is probably just full of more fresh, engaged users. After all, X is carrying 18 years’ worth of users, and as a private company it doesn’t have to share as much detail about its users with regulators and investors.

News publishers are eager to find platforms that can get their stories in front of readers without fighting opaque algorithmic rules, so this increased engagement may lure more publishers to the platform.

With an eye on Bluesky’s skyrocketing growth, the other platforms may be taking notice. Just last week, Meta rolled out a flurry of features like allowing a non-algorithmic “followers” feed to be the default, and rolling out “starter packs,” which have been hugely popular on Bluesky.

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WSJ: OpenAI plans Q4 IPO in race to be the first AI startup to enter public markets

OpenAI was the first to the generative AI market with ChatGPT, and now it hopes to be the first of its AI startup cohort to pull off an initial public offering, according to a report from The Wall Street Journal. The $500 billion startup is in a race against its $350 billion competitor Anthropic to IPO, who has also been exploring one.

According to the report, OpenAI is in talks with banks to try for a fourth-quarter IPO this year, which has the potential to be one of the largest IPOs ever, in a year that is expected to see many record breaking tech companies make tap into public markets to raise massive new rounds of capital.

Ahead of a potential public listing, OpenAI is reportedly attempting to raise a massive round of private investment. The company is reportedly aiming to raise $100 billion, with Amazon potentially accounting for up to half that target. Other investors in talks with OpenAI over the private fundraising round include Nvidia, Microsoft, and SoftBank.

According to the report, OpenAI is in talks with banks to try for a fourth-quarter IPO this year, which has the potential to be one of the largest IPOs ever, in a year that is expected to see many record breaking tech companies make tap into public markets to raise massive new rounds of capital.

Ahead of a potential public listing, OpenAI is reportedly attempting to raise a massive round of private investment. The company is reportedly aiming to raise $100 billion, with Amazon potentially accounting for up to half that target. Other investors in talks with OpenAI over the private fundraising round include Nvidia, Microsoft, and SoftBank.

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SpaceX is actually considering a merger with Tesla or xAI: Report

Bloomberg reports that Elon Musk’s SpaceX is considering merging with Musk’s Tesla. Earlier today, Reuters had reported that SpaceX was thinking of potentially merging with xAI ahead of SpaceX’s IPO this year.

From Bloomberg:

The firm has discussed the feasibility of a tie-up between SpaceX and Tesla, an idea that some investors are pushing, the people said, asking not to be identified as the information isn’t public. Separately, they are also exploring a tie-up between SpaceX and xAI ahead of an IPO, some of the people said.

Musk’s companies already have numerous relationships between themselves, including most recently Tesla’s $2 billion investment in xAI. At Tesla’s shareholder meeting last year, shareholders voted to invest in the company but the board didn’t approve the measure due to significant abstentions.

In 2024, SpaceX incurred about $2.4 million in expenses under commercial, licensing, and support agreements with Tesla, and Tesla incurred about $800,000 in expenses for Musk’s use of SpaceX’s jet.

From Bloomberg:

The firm has discussed the feasibility of a tie-up between SpaceX and Tesla, an idea that some investors are pushing, the people said, asking not to be identified as the information isn’t public. Separately, they are also exploring a tie-up between SpaceX and xAI ahead of an IPO, some of the people said.

Musk’s companies already have numerous relationships between themselves, including most recently Tesla’s $2 billion investment in xAI. At Tesla’s shareholder meeting last year, shareholders voted to invest in the company but the board didn’t approve the measure due to significant abstentions.

In 2024, SpaceX incurred about $2.4 million in expenses under commercial, licensing, and support agreements with Tesla, and Tesla incurred about $800,000 in expenses for Musk’s use of SpaceX’s jet.

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WSJ: Amazon considering $50 billion investment in OpenAI

What a difference half a day makes. Earlier today, The Information reported that Amazon was considering investing roughly $10 billion to $20 billion in OpenAI as part of a $60 billion fundraising round alongside Nvidia and Microsoft. Now The Wall Street Journal is reporting the e-commerce giant could invest up to $50 billion in the ChatGPT maker as part of a larger, $100 billion funding round. The Financial Times also earlier reported today a $100 billion funding round but with smaller amounts from Nvidia, Microsoft, and Amazon.

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Elon Musk’s SpaceX reportedly in talks to merge with xAI

Tesla CEO Elon Musk is reportedly exploring a merger between SpaceX and his artificial intelligence startup, xAI, a move that would bundle rockets, satellites, the social media site X, and AI under one company ahead of SpaceX’s long-anticipated IPO.

According to Reuters reporting, the deal would swap xAI shares for SpaceX stock, potentially valuing the combined operation north of $1 trillion.

Reuters reports:

Two entities have been set up in Nevada to facilitate the transaction, the person said.

Reuters could not determine the value of the deal, its ‌primary rationale, or its potential timing.

Corporate filings in Nevada show that those entities were set up on January 21. One of them, a limited liability company, lists SpaceX ​and Bret Johnsen, the companys chief financial officer, as managing members, while the other lists Johnsen as the companys only officer, the filings show.

The combined companies could also set the narrative groundwork for putting data centers in space — an idea that Musk and a number of other tech billionaires have been floating lately but that may not get off the ground.

In its earnings filings yesterday, Tesla disclosed that it recently made a $2 billion investment in xAI. Last year, Musk’s xAI bought Musk’s X in an all-stock deal.

Reuters reports:

Two entities have been set up in Nevada to facilitate the transaction, the person said.

Reuters could not determine the value of the deal, its ‌primary rationale, or its potential timing.

Corporate filings in Nevada show that those entities were set up on January 21. One of them, a limited liability company, lists SpaceX ​and Bret Johnsen, the companys chief financial officer, as managing members, while the other lists Johnsen as the companys only officer, the filings show.

The combined companies could also set the narrative groundwork for putting data centers in space — an idea that Musk and a number of other tech billionaires have been floating lately but that may not get off the ground.

In its earnings filings yesterday, Tesla disclosed that it recently made a $2 billion investment in xAI. Last year, Musk’s xAI bought Musk’s X in an all-stock deal.

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