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Companies wary as Twitter checkmark policy fuels imposter accounts

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Twitter’s attempt to implement a paid account verification service has attracted imposters spreading misinformation, which experts said could lead major brands to further pull back from the social media platform owned by billionaire Elon Musk.

On April 20, Twitter moved to boost profits by removing the once-coveted blue check marks from accounts and charging $8 a month to users who wish to buy a Twitter Blue subscription to retain their verified status.

Musk’s latest initiative was met with a wave of imposter accounts sharing harmful misinformation. Some organizations have already stopped using Twitter, including the New York City Metropolitan Transportation Authority (MTA) with 1.3 million followers. Both AT&T Inc and Volkswagen AG told Reuters they had paused Twitter ads and had not yet resumed as of April.

Twitter has been hit by a massive decline in advertising since the acquisition but Musk told the BBC last month most of the advertisers are returning to the platform.

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Data from outside research firms and statements from several advertisers show Twitter’s ad business may not be bouncing back that quickly.

“Twitter Blue is a mess. This is more chaos and confusion for brands who were already wary of impersonation. They don’t want to remain on a platform where they feel vulnerable,” said Jasmine Enberg, principal analyst at Insider Intelligence.

Since Musk bought Twitter in October and began making rapid changes, brands have been debating whether they should keep advertising on the platform. Enberg said Twitter’s removal of legacy checkmarks could prompt some companies to stop tweeting and maintaining their profile.

“There’s little incentive for brands to keep an organic presence when they think their brand is at risk, and especially on a platform where it’s not going to drive any meaningful impact,” she said.

Rachel Moran-Prestridge, a postdoctoral scholar at the University of Washington’s Center for an Informed Public, said Twitter’s checkmarks for years gave users confidence an account was legitimate.

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“Without this verification, users have to do much more heavy lifting to try to ascertain whether the account is who they say they are,” she told Reuters in an email.

In a move that furthered confusion, Twitter on April 22 appeared to give some high-profile users a verification mark.

Within the next 48 hours, all but 110 of the most-followed Twitter accounts suddenly had verification through Twitter Blue, indicating Twitter likely gifted the check marks, independent researcher Travis Brown told Reuters.

Neither Twitter nor Musk has commented on the return of the verification marks for a select few users.

An emailed request for comment to Twitter returned an automated reply with a poop emoji.

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Reuters is a partner of Twitter’s Community Notes fact-checking project.

A fake account posing as Disney Junior UK, now a defunct TV channel, last week was issued a gold checkmark used for “verified organizations”. The Walt Disney Co (DIS.N) told Reuters it contacted Twitter and the account was suspended.

New York’s MTA said last Thursday it “does not pay tech platforms” and would stop tweeting service alerts and information.

“The reliability of (Twitter) can no longer be guaranteed,” the MTA said in a statement.

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Since the initial rollout of the Twitter Blue service in November, imposter tweets have spread harmful misinformation.

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U.S. drugmaker Eli Lilly and Co (LLY.N) watched its stock tumble over 4% and was forced to apologize after a Twitter user impersonating its official account posted “insulin is free.”

Imposter Twitter accounts also tarnished the online reputations of Lockheed Martin Corp(LMT.N) and Nintendo Co Ltd(7974.T). Last month, Twitter told advertisers in an email that businesses spending less than $1,000 per month on Twitter ads must be subscribed to Twitter Blue or pay to be part of the verified organizations program to keep running ads on the platform, according to Matt Navarra, a social media consultant who has worked with Meta and Mozilla.

Eric Yaverbaum, CEO of the New York-based PR agency Ericho Communications, said more brands are likely to pull away if Twitter does not implement a stringent user verification model.

“Brands have already stopped ads on Twitter, many won’t come back, and I have a feeling more companies will put an end to advertising on the platform,” Yaverbaum said in an e-mail to Reuters.

Some brands have already taken countermeasures against online impersonation by retaining the services of brand reputation management companies.

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Social Impostor CEO Kevin Long said a number of factors attract online impersonators to a celebrity or brand.

“Just because you had – or will have – a blue verification mark does not deter the imposters from creating accounts,” Long, whose company took down over 8,000 bogus accounts across major platforms, told Reuters in an email.

“The volume of imposter accounts seems to depend on several things — Is the client doing a high profile event that week? Is the client in the news for some reason – good or bad? My experience is this is across all social platforms.”

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Microsoft to invest 2.2bn dollars in cloud and AI services in Malaysia

Microsoft to invest 2.2bn dollars in cloud and AI services in Malaysia

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Microsoft to invest 2.2bn dollars in cloud and AI services in Malaysia

Microsoft (MSFT.O) said on Thursday it will invest $2.2 billion over the next four years in Malaysia to expand cloud and artificial intelligence (AI) services in the company’s latest push to promote its generative AI technology in Asia.

The investment, the largest in Microsoft’s 32-year history in Malaysia, will include building cloud and AI infrastructure, creating AI-skilling opportunities for 200,000 people, and supporting the country’s developers, the company said.

“We want to make sure we have world class infrastructure right here in the country so that every organisation and start-up can benefit,” Microsoft Chief Executive Satya Nadella said during a visit to Kuala Lumpur.

Microsoft will also work with the Malaysian government to establish a national AI Centre of Excellence and enhance the nation’s cybersecurity capabilities, the company said in a statement.

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Prime Minister Anwar Ibrahim, who met Nadella on Thursday, said the investment supported Malaysia’s efforts in developing its AI capabilities.

Microsoft is trying to expand its support for the development of AI globally. Nadella this week announced a $1.7 billion investment in neighbouring Indonesia and said Microsoft would open its first regional data centre in Thailand.

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Nvidia supplier SK Hynix says HBM chips almost sold out for 2025

Nvidia supplier SK Hynix says HBM chips almost sold out for 2025

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Nvidia supplier SK Hynix says HBM chips almost sold out for 2025

South Korea’s SK Hynix (000660.KS) said on Thursday that its high-bandwidth memory (HBM) chips used in AI chipsets were sold out for this year and almost sold out for 2025 as businesses aggressively expand artificial intelligence services.

“The HBM market is expected to continue to grow as data and (AI) model sizes increase,” Chief Executive Officer Kwak Noh-Jung told a news conference. “Annual demand growth is expected to be about 60% in the mid-to long-term.”

SK Hynix which competes with U.S. rival Micron (MU.O) and domestic behemoth Samsung Electronics (005930.KS) in HBM was until March the sole supplier of HBM chips to Nvidia, according to analysts who add that major AI chip purchasers are keen to diversify their suppliers to better maintain operating margins. Nvidia commands some 80% of the AI chip market.

Micron has also said its HBM chips were sold out for 2024 and that the majority of its 2025 supply was already allocated. It plans to provide samples for its 12-layer HBM3E chips to customers in March.

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“As AI functions and performance are being upgraded faster than expected, customer demand for ultra-high-performance chips such as the 12-layer chips appear to be increasing faster than for 8-layer HBM3Es,” said Jeff Kim, head of research at KB Securities.

Samsung Electronics (005930.KS) which plans to produce its HBM3E 12-layer chips in the second quarter, said this week that this year’s shipments of HBM chips are expected to increase more than three-fold and it has completed supply discussions with customers. It did not elaborate further.

Last month, SK Hynix announced a $3.87 billion plan to build an advanced chip packaging plant in the U.S. state of Indiana with an HBM chip line and a 5.3 trillion won ($3.9 billion) investment in a new DRAM chip factory at home with a focus on HBMs.

Kwak said investment in HBM differed from past patterns in the memory chip industry in that capacity is being increased after making certain of demand first.

By 2028, the portion of chips made for AI, such as HBM and high-capacity DRAM modules, is expected to account for 61% of all memory volume in terms of value from about 5% in 2023, SK Hynix’s head of AI infrastructure Justin Kim said.

Last week, SK Hynix said in a post-earnings conference call that there may be a shortage of regular memory chips for smartphones, personal computers and network servers by the year’s end if demand for tech devices exceeds expectations.

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The Nvidia (NVDA.O) supplier and the world’s second-largest memory chipmaker will begin sending samples of its latest HBM chip, called the 12-layer HBM3E, in May and begin mass producing them in the third quarter.

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Qualcomm jumps as AI sparks rebound in Chinese smartphone market

Qualcomm jumps as AI sparks rebound in Chinese smartphone market

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Qualcomm jumps as AI sparks rebound in Chinese smartphone market

Qualcomm (QCOM.O) shares rose 4% in premarket trading on Thursday after the smartphone-focused chipmaker signaled an AI-fueled rebound in demand, especially in China, after a two-year slump.

Sales to Chinese smartphone makers jumped 40% in the first half of its fiscal year, the company said on Wednesday, as buyers there gravitate toward higher-priced devices that can accommodate AI chatbots.

“Chinese vendors who traditionally relied more on MediaTek, are going to start leveraging Qualcomm’s high-end chips more as they push hard into the AI Agenda,” said IDC analyst Nabila Popal.

“They further represent an upside for Qualcomm because majority of the recovery is also going to be driven by Chinese OEMs this year, coming from a tough last two years.”

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Qualcomm on Wednesday projected third-quarter sales that were above estimates as it also benefits from its IoT (Internet of things) and auto segments.

The company, the biggest supplier of smartphone chips, was on course to add more than $8 billion to its market value based on premarket movements. Other semiconductor firms such as Arm and Broadcom (AVGO.O) rose 2.8% and 2.4%, respectively.

According to preliminary data from research firm IDC, in the high-end segment, the AI buzz and the foldable products allowed the Android smartphone vendors to further differentiate themselves from Apple (AAPL.O) and garnered increased interest from Chinese consumers in the first quarter of 2024.

“We’re optimistic that numbers can be driven higher, given last year’s muted Android cycle and the likelihood of IoT(internet of things) improvement as inventory normalizes,” analysts at Wolfe Research said.

At least 14 analysts raised their price targets on Qualcomm, according to LSEG data.

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Qualcomm’s shares have gained 13.5% this year following a 31.5% rise in 2023.

Shares of Apple, which is set to report earnings after market closes on Thursday, were up 1.05% in premarket trading.

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