February 28, 2025
Welcome to The L@B Report
Welcome to this month’s issue of The L@B Report from GSG, bringing you news and insights from the intersection of digital media and public affairs. In this issue, we discuss Elon Musk’s Grok-3 AI model, advertisers coming back to X, and TikTok’s return to the Apple and Google app stores.
This issue of The L@B Report was put together by Ryan Alexander.
In the News
Elon Musk’s xAI Releases Grok-3
Grok-3 outperforms AI models from Google, DeepSeek, and OpenAI
Elon Musk has made a lot of news recently for his comments, posts, and actions supporting President Donald Trump’s “government efficiency” efforts as the unofficial head of the Department of Government Efficiency (DOGE).
But lost in all of that was some important and surprising AI news.
According to Bloomberg News, Musk’s Grok-3 AI model outperforms Google’s Gemini, Anthropic’s Claude, DeepSeek’s V3, and OpenAI’s GPT-4o in key areas like math, science, and coding.
Takeaway
As Taegan Goddard of PoliticalWire.com points out, xAI has existed for just 19 months and Musk, “operating at breakneck speed, has nearly caught up to—and in some cases, surpassed—the world’s largest and most well-funded AI research labs.”
As the head of DOGE, Musk and his team have been “scouring government records” and have an “unprecedented opportunity to access vast amounts of non-public data.” Goddard wonders if Musk is building an AI model with “proprietary information that no other competitor has.”
While we agree that Musk potentially dominating AI could make him the most powerful man on the planet, it’s too early to make that call. For example, it was just a few weeks ago that the markets went into a tailspin over the emergence of China’s DeepSeek AI model.
Advertisers Begin to Return to X
But most seem to be doing so to curry favor with Elon Musk and Donald Trump
A new report in the Wall Street Journal details how advertisers are returning to X in order to avoid being added to an ongoing lawsuit by the company or see their business otherwise targeted by Musk and Trump.
According to a segment on Bloomberg Technology, X has seen a 40% increase in December advertising revenue compared to a year ago.
Takeaway
As Gizmodo reports, X has “never been a great place to advertise, with an audience much smaller than the likes of Google, Facebook, or Amazon; and comparatively crude targeting abilities” and “advertisers tend to be risk averse, seeking to appear alongside ‘safe’ content so as not to appear to be endorsing harmful material like Nazi imagery.’”
We generally agree with this assessment and largely advise clients to avoid advertising on X outside of perhaps geotargeting Capitol Hill, the White House, and Mar-a-Largo with the hopes of getting messages in front of key decision makers, especially Republicans.
While X used to have a diverse political-news-junkie-audience, Musk’s actions and comments have driven a large number of Democrats and progressives to Bluesky, making X a less enticing platform for left-leaning advocacy campaigns.
Apple and Google Restore TikTok to their App Stores
Without app store access, TikTok faced growth challenges
According to a report from POLITICO, Attorney General Pam Bondi sent letters to Apple and Google assuring them they will not face fines for violating a law that banned TikTok last month.
Both companies had taken the app off their online stores after a ban on TikTok took effect in the United States on Jan. 19. The companies had kept TikTok unavailable for downloads even after Trump signed an executive order to not enforce the law for 75 days.
Takeaway
While TikTok was unavailable for downloads from the Apple and Google App stores, it prevented any new users from joining the app and prevented existing users from using the app if they got a new mobile device and needed to re-download it. This likely caused TikTok to face growth challenges in the United States.
In addition, it presented a challenge for public affairs and marketing professionals who needed to manage client accounts on TikTok, as some features are limited to the app and are unavailable in the web version of the platform.
It will be interesting to see what Trump does when the 75-day executive order is up if TikTok has not found or agreed to a United States buyer. Regardless of what happens with TikTok, keep in mind that to date, the platform has not allowed social or political advertising.
More from GSG
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