Amazon is spending more money on ads for the social media platform X, signaling a reversal of its previous strategy, The Wall Street Journal reports, citing people familiar with the situation. Over a year ago, the multinational tech company pulled much of its ad spending from X, as did other brands, over concerns about content moderation.
The Journal reports that Elon Musk emailed X employees earlier this month. Musk reportedly stated, “Our user growth is stagnant, revenue is unimpressive, and we’re barely breaking even.” Musk denies sending the email.
Advertisers generally want to ensure their ads are placed in environments that align with their values and do not appear next to harmful or offensive content.
However, the attitudes of prominent tech leaders toward Musk and his social media company have shifted in recent months.
Musk was a vocal proponent of President Donald Trump during the campaign. He endorsed Trump after the assassination attempt of Trump during a rally in Butler, Pennsylvania, in July 2024.
Trump also appointed Musk to lead the new Department of Government Efficiency, or DOGE. The department aims to shrink the government workforce and cut trillions of dollars in federal spending.
Given Musk’s new alliance with Trump, business and world leaders have worked to strengthen relations with him, considering his prominent role in Washington.
The tech mogul attended events at Trump’s inauguration. He met with other billionaire tech leaders, including Amazon’s Jeff Bezos and Meta’s Mark Zuckerberg.
Apple is also considering testing ads on X, according to the Journal.
