After one year of acquisition, Musk personally unveils the true face of the ‘Everything App’ in an internal meeting.

After One Year of Acquisition Musk Reveals the True Face of the 'Everything App' in Exclusive Internal Meeting

Author: Alex Heath, Deputy Editor and Command Line newsletter writer for The Verge
Source: The Verge
Translation: Shawn Oba, LianGuai

According to Musk’s own description, he plans to launch a “universal app” called X, which will replace YouTube, LinkedIn, FaceTime, dating apps, and even banking.

Since Elon Musk acquired Twitter a year ago, he has completely overhauled it. The X platform is now rapidly evolving, and he recently told employees that X will become a “single application that covers everything.” As he has described before, Twitter, which used to serve as a “digital town square,” no longer meets the demands. In Musk’s view, for X to succeed, the platform needs to compete with YouTube, LinkedIn, FaceTime, dating apps, and the entire banking industry.

During the internal X meeting on October 26th, Musk said, “We are rapidly transforming the company from the old Twitter 1.0 into an all-encompassing application.” The Verge listened to the meeting and published a complete transcript. The meeting was held to commemorate the one-year anniversary of Musk’s acquisition of Twitter for $4.4 billion and was the first all-staff meeting he and CEO Linda Yaccarino, who joined in May this year, co-hosted.

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Musk is still responsible for X’s product and engineering team, and he spoke for the majority of the 45-minute conference call. Although part of the purpose of the all-staff meeting was to answer pre-submitted questions from employees, he took the opportunity to expound on various matters, from sharing bad news at the meeting to the state of the news industry.

So far, the process of transforming Twitter into X has been quite chaotic. Due to Musk’s eccentric behavior, the company’s biggest advertising clients have mostly left in the past year; his X Premium subscription has yet to catch on; the company is still not profitable; and its valuation is decreasing. However, in last week’s conversation, Musk displayed optimism and said at one point, “I think this could be the fastest innovation speed in the history of an internet company.”

Below is the complete transcript of the all-staff meeting Musk and Yaccarino held with X employees on October 26th, slightly edited for clarity:

Linda Yaccarino: This is our all-staff meeting, and I want to thank everyone who is on this conference call, especially for each person’s outstanding achievements over the past year. It would have been entirely impossible without everyone’s hard work, especially because we had to come together in the face of Hamas launching terror attacks in Israel. We are experiencing an indescribable time. Since our team tirelessly worked day and night for 20 days to keep this platform safe and make it a place of connection for the neediest, so I sincerely say thank you.

I have been here for about 16 weeks now. I have actually always been someone on the outside looking in. In fact, the outside view is what attracted me to come here. I am grateful to be here with all of you. The most incredible thing since I joined the company is the ambitious ambition of our company. The innovation speed of this company, honestly, is unmatched by any other company. Before coming to X, I have always been striving to accelerate the development speed of our clients and my company. I don’t need to do that here. Speed is at our core. This hustle and speed are admirable, and what we are building is completely changing the expectations of our users and clients for a platform.

Let’s take a moment to reflect on what we have accomplished in just one year. In terms of videos, the progress we have made, growing our community, our creator program, X Hiring. I don’t know about you, but some of you may have been receiving video calls from me all night last night. It never stops. And with the payment system on the way, I think it’s safe to say there’s no substitute for X, which is why everyone is closely watching our every move.

Elon Musk: And trying to imitate us.

LY: When you have the kind of profound impact that X does, people pay close attention to every move, I guess that’s to be expected. We need to adapt to it, embrace it. I specifically used the phrase “profound impact” because we are creating something more meaningful. We are committed to upholding freedom of speech. What we are building at X is helping humanity thrive.

Listen, I know our decisions aren’t always anticipated or easy. Change, innovation, challenging tradition. It’s not simple. In fact, it’s really hard. But this company, everyone on this conference call, is exceptional. We are writing history. Creating a new set of rules. We know there are skeptics out there, but our momentum – we all know – is spreading. And in this process, we are creating more and more supporters.

So, I have confidence in X. I have confidence in all of you, of course. I just want to say congratulations to everyone on a great year. Get ready for the arrival of the second year. Speaking of which, I’ll hand it over to Elon.

EM: Thank you, Linda. Thank you for joining. We have achieved tremendous accomplishments in the past year. It’s been lightning-fast execution. We are rapidly transforming the company from what was essentially Twitter 1.0 into a comprehensive app. A single app that can do everything on our system, basically. That’s not to say it precludes other apps, but I think the missing fundamental is a single app that encompasses everything. Payments, messaging, videos, calls, anything you want to do from one convenient place.

In China, they already have that to some extent, like WeChat. And we don’t. Outside of China, such an app doesn’t exist. But that doesn’t mean we just want to copy WeChat. I think we can actually create something beyond WeChat. We can do some incredible things here.

And the missing fundamental, something immensely useful, is a single app that encompasses everything

EM: So, let me list all the achievements the team has made in this year. And, I should say we’ll try to do it quarterly, not once a year. One year is really a long time. About every three months, we will do it. The next one we’ll do using X’s live video. We’ll livestream it to Earth, essentially. We are a company that believes in transparency, so maximum transparency is available to anyone wanting to watch our company’s discussions. Actually, we don’t have public transactions, which is helpful because you can say what we want to say without worrying about some kind of class-action lawsuit.

LY: [Laugh]

EM: To be honest, this is a disaster. When I saw this list, I was surprised. So, recently, we launched audio/video calls, and actually, many people have been calling me—

LY: Did you answer, Elon?

EM: I did. I thought it was a FaceTime or Signal call, or something similar. It’s an X audio/video call. Very cool. It’s the latest thing, still in beta. But it will have all the features people are already used to from FaceTime or Signal.

We have also made significant improvements to video. So, our real-time video streaming is much better, noticeably better. You can now upload long videos, including entire movies. I think it’s cool that, for example, Apple uploaded an entire episode of the Silo show, which is actually a pretty good show. Someone told me it was the biggest social media event Apple has ever held, which is insane. Clearly, companies should do more than that.

LY: It definitely caught everyone’s attention, considering that, along with immersive video products or vertical screen video products, a lot of people, or when I talk to many clients, they’re amazed at the growth, right? Seventy percent growth in the past six months, driven by Generation Z. So, when you consider the rapid progress we’ve made in the video space, it definitely caught everyone’s attention.

EM: Yes. Video is the biggest bandwidth for consuming information. Sometimes people wonder [about] Generation Z, “Are their minds quick because they keep watching short videos over and over?” But actually, video is the biggest bandwidth for communication. Of course, the content you watch can be questionable, but evidently, it’s the best way to consume information. You can think of memes as highly compressed information, where you convey many different ideas in an image with some text.

So, let me list this rather amazing list. Actually, it’s an interesting list.

LY: Yes.

EM: We introduced an ad revenue sharing for creators or indeed anyone on the platform. It has had a significant impact on many people’s lives. We have paid creators over $20 million, and we expect that number to increase significantly. Our number of creators has increased by an order of magnitude, and this is just since mid-year. In less than six months, our number of creators has grown ten times.

The community is growing rapidly. There’s still a lot of work to be done to make the community more attractive. But we see a fast growth rate in the community. I’m excited about some of the changes we’re making to the community. One change that I think will be very powerful is community admins being able to include any X account. You can add any @ mention that hasn’t joined the community yet.

Take the Diablo community I’m in, for example. There, what you want to see is evidently anything from Blizzard, perhaps top video game reviewers for Diablo, and the people who have already joined. So, think of it as a community, but it also includes a list of accounts, which I think will really bring the community to life. I think it’s a simple yet profound change.

LY: And Elon, think about it. When you talk about all of our innovations, extending to long-form videos or movies, all the way to communities, that’s what drives the time spent on the platform. With video calls, they will appear more frequently, which will make them more enjoyable and useful. And people will stay longer, so there will be more things to experience, which benefits everyone, all partners included.

EM: Yes, absolutely. I think people will find that transitioning from text or video comments to direct messaging, and then to audio/video calls, including group audio and video calls, and then conducting payments will be very captivating. As for payments, we’re just waiting for all the approvals, hoping to have them in the next few months.

I think people will find the transition from text or video comments to direct messaging, and then to audio/video calls, followed by payments, to be very captivating.

“We have over 5 billion users monthly, with roughly 5 billion posts per day and over 100 billion views daily. These are massive numbers. We get about 1 million new users signing up daily, and the amount of time users spend on the system is increasing. So, it’s all good. If there’s one goal, it’s to maximize the amount of time users spend on the system without regret. Not just increasing usage time, but maximizing regret-free time. And we’re making good progress in that regard.”

We’ve also launched initial content for hiring, similar to LinkedIn’s competition. If you’re a company offering job opportunities or looking for a job, this will be a great place to find excellent talent. Historically, I’ve done a lot of recruiting here.

LY: And we’ve talked about it several times already, right Elon? Just how natural and organic that real filtering and hiring process happens. In fact, I might be a little surprised, but I’m genuinely glad that our advertising partners have shown interest in X Hiring. Because you’re right, LinkedIn has needed some competition for a while. And because of the filtering and authenticity features of our platform, they know they’ve started exploring. So it’s become an interesting new form of communication with clients.

EM: Honestly, I value someone’s previous content on X platform more than anything else. Have they posted interesting material? That could be the biggest indicators of whether they’re outstanding and worth hiring.

I think it’s the same in the romantic sense. Finding someone on the platform. Obviously, I found someone on the platform, and so have my friends. And you can judge if it’s a good match based on their posts. So—

LY: So, next quarter, we’ll be doing live streaming. Do you want to share some vision about the future of live streaming? How do you view it in terms of overall content?

EM: I think video live streaming will be crucial for sports events, political events, and for people who are actually present. You can see what’s happening in real time, rather than through the media’s perspective, actually allowing people on the front lines to stream or upload videos. So you can actually see what’s happening in real time. My understanding is that it’s been very helpful in Israel for helping people stay safe and highlighting the issues there.”

“In fact, I believe there has been a profound shift in the news. When you really think about information, I consider it to be collective consciousness. If you think of humanity as a superorganism, and all humans are basically the eyes and ears of that collective consciousness, you want all those eyes and ears directly feeding information into the collective consciousness. Instead of going through the slow and often distorted perspective of the media. Actually, people on the ground know what’s happening in specific industries or specific areas better than journalists. I’m not saying journalists shouldn’t write things, but how many journalists are there? And how many of them are actually on the front lines? How many of them are actually at the scene? How many people actually go there instead of reading something on the internet or writing an article? Actually, the number of real journalists is very small. Most of them are not on the ground, and most of them are not industry experts. But it’s different for X. People are on the ground. They are industry experts.”

“We have one of my favorite features, which is community notes, to help distinguish fact from fiction. Community notes are completely open source, including the data. As I’ve posted, sometimes I get blamed or asked, ‘Hey, can you delete this community note?’ And I say, actually, it’s not possible. I actually don’t have that ability.”

“LY: About people being forced to accept certain types of media, specific comments with biases, I think we often underestimate people’s ability to seek out real information and make decisions for themselves.”

“EM: Yes.”

“LY: That’s the beauty of it, right? The power of the platform, right? Being able to find this information. And that’s where community notes come in, giving you some fact-checking from people on the ground. As we’ve seen, especially in the past 20 days, community notes have become so powerful and meaningful, and now you have so many new readers and contributors through community notes. It’s a very unique capability that X provides.”

“EM: Community notes started before the acquisition, called Birdwatch. But it was very early stage, and limited to the US. I value that tremendously. That’s one of the top priorities we need to make as a company.”

“LY: It has covered 44 countries and has over 100,000 contributors. The growth has been really rapid. So that’s really great.”

“EM: I’m always amazed at the accuracy rate of community notes. Nothing is perfect, but if a community note has been voted on and remained, then the accuracy is over 90%. Actually, that’s the most accurate thing. If I want to know what’s happening, I’ll look at community notes to find out if it’s true.”

“LY: I think that’s really important because it’s one of the strongest feedbacks we’ve received, that our approach is completely transparent for everyone, even from our biggest skeptics. And when you talk about community notes, I think I’ve probably given about five speeches in the past 20 days about the development, improvement, and maturation of community notes. But the company innovating in a completely transparent way, which may attract more skeptics, is very powerful when compared to other companies, who don’t tell them the exact situation in real time. The positive feedback is very strong.”

Community Notes Will Become the Most Reliable Single Source of Information on the Internet

EM: Community notes will be better than some mysterious censorship agency, where no one knows who they are or why they make decisions or anything else. That’s what leads to manipulation of information. I want to make it clear that community notes will become the most reliable single source of information on the internet, that’s it.

I want to quickly go through the list to acknowledge the great work that has been done. We’ve added picture-in-picture functionality to videos on our website. Lots of video features. We’re catching up with YouTube quickly and might surpass them. I occasionally test it by live-streaming games, and we’re also syncing real-time videos with stored videos because they should really be the same thing. Uploading videos or delayed live videos are essentially the same. So, we’re making sure the interface is the same.

I also want to thank those who remove code. My general philosophy on software is that you add one line of code, you get one point; you remove two lines of code, you get two points. That’s a very important thing. So, thank you to everyone who makes an effort to simplify the codebase, remove and streamline the software.

We’re working on getting a money transfer license. Hopefully, in the next few months. We’ve added identity verification features and the ability to hide likes. We explicitly state that if someone faces harassment or dismissal from their employer due to content they post on our platform, we will support them. And we will provide legal support for them.

We’ve encrypted private messages, which is also one of the features we will further expand on. For private messages, it’s important that, like Signal, even if someone points a gun to my head, I still can’t tell you what someone else’s private messages say. Essentially, they need to be explicitly confidential, otherwise, you really can’t trust them. The team has done a lot of work to reduce content that exploits children. This has decreased significantly, I think by over 90%.

LY: Elon, if you allow me to interrupt for a moment. But this is one of the biggest support we receive from partner groups or interest organizations in specific fields, especially considering the situation on this platform a year ago and our zero-tolerance approach to it now. So, this is one of the important things we should celebrate.

EM: Absolutely right. There’s more to do. We’re also working on significantly improving the search function. We want to achieve semantic search. So, when you enter a search term, it understands what you mean and can show text, images, and videos that match your intent. Instead of just strict text comparisons. We’re seeing some preliminary results in this direction with the “view similar posts” feature. It’s an AI-based system.

In fact, we need to move towards the whole system where all the “recommended for you” posts are based on AI. Essentially, you build a vector space around the user, and then each given post has a vector space as well. You correlate these two vector spaces and show people what’s most interesting to them. This will update all our current heuristic approaches.

We went through a similar process in Tesla’s autonomous driving, initially mostly using C++ code and gradually transitioning to more and more neural networks. Now, the latest version of autonomous driving, called Rodeo, is entirely composed of neural networks. I think this is very attractive for recommended content. It will be a game-changer. It also means that if someone makes a very interesting reply, it would typically get buried and have very little exposure opportunities compared to the original post. But sometimes, replies can be more interesting than the original post. And now we will lose all of that. In a purely AI-based system, regardless of what the reply is, if it’s attention-grabbing, it will be displayed more prominently than the original post, if it’s attention-grabbing.

LY: Elon, can we talk about our ongoing efforts to combat spam and bots? Because when you look at our user and performance numbers, those are a result of actively fighting against spam and bots.

EM: Yes. Currently, even very basic artificial intelligence, let alone cutting-edge stuff, can easily pass all kinds of “are you human?” tests. For example, solving this puzzle or telling me which images have traffic lights. AI is faster and better than humans at recognizing and passing these “are you human?” tests. You don’t even need to start with a bot.

You could have, you know, a warehouse with a hundred people, each with a hundred phones, just taking “are you human?” tests because they are humans, and they would actually do better than regular humans because they are doing this all day. This is a very important problem to solve when it comes to bots and trolls. Avoiding platform manipulation is important, where some people could launch a hundred thousand bots or a hundred thousand fake accounts to make something look more viral than it actually is, or just spam users with crypto scams or junk information in some way. This fundamentally adds noise to the system and makes our platform less useful.

If you ignore the bots, then things look a lot busier than they actually are. So, there are other things that might look very busy, but they are just the actual bots. Of course, the bots don’t buy things, so advertisers shouldn’t find bots attractive unless the bots are actually making purchases, which they don’t. Then you end up with a bunch of bot-generated junk. That means there’s bad content. It’s not interesting content. I think bots and trolls reduce the signal-to-noise ratio of the collective thinking on platform X.

LY: Can we safely assume that the “not a bot” initiative will expand beyond Singapore and New Zealand at the appropriate time?

EM: Yes. We are conducting an experiment to see what consequences will arise if only $1 per year (or 0.3 cents per day) is available. Sometimes, I come across ridiculous things like, “How can people in poverty afford it?” And I would say, “They somehow made it to the internet. They have electronic devices and they are on the internet, and $1 per year for them is only 0.3 cents.” That’s affordable for anyone, obviously.

From my experience starting with X.com – X/LianGuaiyLianGuail, those spam emailers and scammers were the loudest complainers. Whenever any action was taken, they would express the strongest indignation because they didn’t like being shut down. So, we expect something similar to happen here, but we are being cautious. That’s why we didn’t start globally right from the beginning. We are just trying it out in the Philippines and New Zealand. So, we’ll see how it goes and make some adjustments.

Even $1 per year is insignificant for anyone, but if you want to make 100,000 robots, that amount can still be expensive. Right now, you need $100,000 to buy 100,000 robots, and you also need 100,000 payment methods, which makes it more challenging. We have to be careful in this regard.

LY: When we think of the recruiting business being disrupted by X, we also think about the public relations business being disrupted by X Wires, which is also very exciting. Getting close to some demands that I don’t think many people have ever thought of, you know, modernizing, right?

EM: Yes. Really, there’s no need to use PR Newswire. We are the PR Newswire. How many people actually subscribe to PR Newswire? Basically no one. If you really want to get information out as a company, we are the best method so far. Obviously, this is something we need to emphasize to companies. Those who have been around for a while will keep doing what they’ve been doing until we point out, “Hey, there’s a lower cost, simpler way to do this, and it’s putting it on our platform.” That’s what we’re here to do.

LY: I should get you those numbers and results because we just had two fairly sizable institutions merge: Camelot and PMG. They came to me the night before. I don’t know if they heard about this a couple of weeks ago. They asked us to help them announce the merger. The response they got was 10 times more than what they ever imagined, spreading the news from reporter to reporter or publication to publication. So, I think we’re doing some meaningful things.

EM: Sounds good. Cool. Yeah, sorry if I forgot to mention anything because we’ve done a lot in a year. I think this might be the fastest pace of innovation of any internet company. Maybe X/LianGuaiyLianGuail had a similar development speed in the early days, but other than that, it is undoubtedly the fastest pace of innovation in any existing mature company to date.

LY: I think there are about 200 product innovations in the scrolling number list. I’m not sure if most companies can talk about these throughout their lifespan. Even though we have launched so many important products like ours, it has only been a year. I think that’s why – because we have challenged tradition so much – people are very interested in what we are doing.

EM: Indeed. The timing to focus is not when the media has negative reports about our company, but when they no longer bother writing those reports.

LY: Yes. If they stop writing about us, then we become irrelevant. Or we always say we have become quite boring, but I don’t think we are boring. (laughs)

The timing to focus is not when the media has negative reports about our company, but when they no longer bother writing those reports.

EM: And there’s long-form content too. We can now publish long articles by editing our posts. We will introduce a very complex text output capability that can rival what others are doing on other platforms. Basically, you can publish complete rich text posts, including illustrated novels with videos. In short, there are still many features. We also have some features that have not been mentioned. This is just part of the achievement list. Clearly, there are more things to come in the future.

LY: We are all looking forward to those. None of these achievements on this long list would have been possible without the unconditional dedication of this team. It is one of the most amazing things I have experienced since joining the company. A company with 8,000 employees has been reduced to less than 1,500 people and achieved what we have achieved. I think this almost writes a rule or a script for other companies to follow. So, thank you all. This is an incredible accomplishment.

EM: Very exciting. I look forward to the next live broadcast on our platform.

LY: That will be in the next quarter. We can discuss more things. Alright.

EM: Any questions? I’m happy to continue.

LY: Yes, if we send them to Elon, we will answer them.

EM: Just reply to my post.

LY: Someone asked an interesting question about something they haven’t heard about yet: What do you think will happen next that will surprise everyone?

EM: I think payment and becoming a financial center will surprise people (its power). I really understand this world, obviously. X / LianGuaiyLianGuail’s product roadmap was actually written by David Sacks and me in July 2000. For some reason, once it became part of eBay, they not only did not implement the rest of the list, but actually reversed some key features, which is crazy. LianGuaiyLianGuail is a less complete product than the one we proposed 23 years ago (in July 2000).

When I mention payments, I’m actually referring to someone’s entire financial life. If it involves money, it will be done on our platform – whether it’s money, securities, or anything else. Not just sending your friend $20. I mean, you don’t even need a bank account.

LY: We see the full opportunity in 24 years, right?

EM: Oh, yes. I mean, if we haven’t launched this feature by the end of next year, I’ll be surprised.

LY: Someone asked me an interesting question. I’ll try to answer it first, maybe you can add something. The question is: “What should we stop doing in the second year and what should we start doing in the second year?” I thought about it. Everything we discussed today. But for those who don’t yet understand our vision, for those who don’t know what’s happening at X Company, don’t give it any attention. Ignore it. Focus on what’s happening right here and realize that we have a lot to do. So we need to make sure payments can provide the strongest service possible.

Because you have to focus on the goal we’re trying to achieve: the complete X vision. You have to devote yourself to it. Tune out the noise and focus only on what we need to do here. I think it’s a great advice for all of us because what we’re doing here is very special.

EM: Yes, absolutely. Just focus on improving the product.

There’s one thing I want to mention. This rule has already been implicitly implemented at SLianGuaiceX and Tesla, but I want to explicitly apply it to our company, X Corp. In any meeting, make sure there’s at least one piece of bad news. You can have more than one piece of bad news. If you’re meeting with me, try to bring at least one piece of bad news or more. SLianGuaiceX’s meetings are great at this. They’re dominated by bad news. Generally, bad news should be loud, repeated, and timely. Good news can be mentioned softly once. So please make sure there’s at least some bad news in any meeting and start from there. Another way to think about it is that we want to establish a feedback loop that’s as good as possible, and sometimes it’s uncomfortable to bring up bad news. We need to clearly state that bad news should be brought up in every meeting, not just with me or Linda, but universally within the company. Basically, what do we need to improve and enhance?

LY: Yes. Be open-minded and allow for different opinions and debates. That’s where innovation will happen. It may be tough to hear, but it will bring about change.

EM: SLianGuaiceX is really good at bringing up bad news because if you don’t bring up bad news, the rocket will explode. That’s really bad news…

LY: High risk.

EM: Yes. SLianGuaiceX has gone through traumas. We’ve had three Falcon 1 failures and two Falcon 9 failures, and it’s deeply ingrained in the minds of the company’s people. Employees know that bad news in meetings is nothing compared to a rocket explosion. So, SLianGuaiceX is excellent at handling bad news. Tesla is also quite good. I just want to emphasize: it’s really necessary and very important.

LY: Understood, thank you.

EM: I’m going through the replies.

LY: Me too.

EM: Let’s see if there’s anything I haven’t mentioned yet. The livestream quality can be improved. We are working hard to enhance the livestream. Obviously, we would like to provide full 4K livestream, which is crucial especially for watching sports games or rocket launches.

LY: I don’t know if it’s just me, but the video quality on phones is excellent.

EM: Oh, yes. I think we are actually good in terms of phone resolution. But if you put the video on a big-screen TV, the resolution won’t be as good as on TV.

LY: Okay, so you have this idea. What do you think about X’s performance on big screens?

EM: Yes, absolutely. We want to exist on YouTube or wherever the videos are. It means that you want X application to be available on any TV. If someone just bought a TV, X application should be one of the options. You can watch YouTube, or you can watch X.

We have made some progress in this area, being able to cast the content to the screen like Apple does. We hope to be able to play on the TV like YouTube or other content. This is really important because especially if people want to play long-form content, like long videos and stuff, holding your phone for two hours can make your arm tired. Although it’s possible, it’s not the best way to consume long videos. You want to be able to sit down and watch your experience.

LY: I think all our content partners will contribute to this thinking and I can take on this task as well.

EM: We may already have it covered. With the amount of achievements we’ve made in the first year, I think we can achieve more in the second year. As mentioned earlier, we will have company meetings every three months to address questions dynamically. We have a very exciting future, and thank you all for helping to make it happen.

LY: Thank you, Elon. Also, thank you all for persevering in the first year. The future of the second year is bright. Thank you, everyone.

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