KEY FACTS: Elon Musk announced that X will significantly increase creator payouts in a direct challenge to YouTube's dominance in the video monetization space, responding affirmatively to a user suggestion while emphasizing strict enforcement against system gaming. The move aims to attract high-quality content creators amid concerns over AI models scraping the internet, with symbolic imagery of Musk in a DOGE hat alongside X and YouTube logos underscoring the competitive intent. ___ ![image.png](https://files.peakd.com/file/peakd-hive/uyobong/23xVApoJuzfmL2fJQZwkRywVFHKSRut7t7UtV9JpunEBHEayAPwEX262AR6bMyEVf8eDF.png) Source:X, YouTube, Elon Musk ___ # Elon Musk Directs X to Boost Creator Payouts to Challenge YouTube's Dominance Elon Musk has instructed the team at X (formerly Twitter) to significantly increase payouts for content creators, explicitly aiming to rival Google's YouTube. The announcement, which surfaced on December 30, 2025, stems from Musk's direct response to a user suggestion on the platform, signaling his intent to make X a more attractive destination for video content producers. The directive came in reply to a post advocating for dramatically higher payouts, potentially exceeding YouTube's rates, to ensure platforms like X retain high-quality, authoritative content in an era dominated by large language models (LLMs) scraping the internet. Musk responded: "Ok, let’s do it, but rigorously enforcing no gaming of the system." This caveat highlights concerns over abuse, such as bot farms or engagement manipulation, which have plagued similar programs. The news quickly went viral, amplified by accounts like Watcher Guru, which posted: "JUST IN: Elon Musk tells X to increase creator payouts to compete with YouTube." The post included symbolic imagery: Musk wearing a "DOGE" hat surrounded by American flags, juxtaposed with the X and YouTube logos, underscoring the competitive showdown. X's creator revenue-sharing program, launched in 2023, initially tied payouts to ad impressions from verified users. However, creators frequently complained of inconsistent and low earnings compared to YouTube's established model, which shares approximately 55% of ad revenue. In October 2024, X shifted away from ad-based payouts entirely, focusing instead on engagement from Premium subscribers to stabilize income and encourage quality content. Despite these changes, including raising Premium+ subscription prices in late 2024 to fund larger creator pools, many influencers remained skeptical. High-profile figures like MrBeast (Jimmy Donaldson) have repeatedly highlighted the gap. Other creators echoed similar frustrations. One user reported earning less than the $10 minimum payout threshold despite 9 million views and over 200,000 engagements in a single period—earnings that would translate to at least $10,000 on YouTube. Skeptics, including influencer Dom Lucre, argued that past "increase" announcements often benefited only a few high-profile accounts before reverting to normal, questioning whether X has the ad revenue foundation to sustain broad payouts. Musk's latest push aligns with his long-term vision of transforming X into an "everything app," with video as a core pillar. Since acquiring the platform in 2022, Musk has courted top YouTubers, once instructing staff to offer 10% higher pay than competitors. The emphasis on anti-abuse measures suggests lessons learned from prior issues, where bot-driven engagement inflated impressions without genuine value. Analysts see this as a direct assault on YouTube's near-monopoly in long-form video monetization. YouTube's Partner Program has paid out billions annually, fueled by robust advertising. X, recovering from advertiser exodus post-acquisition, relies more on subscriptions. Boosting payouts could attract migration of creators, increasing video uploads and user retention—key metrics for ad recovery. The timing also ties into broader AI concerns raised in the original suggestion: As LLMs like Grok (built by Musk's xAI) train on internet data, platforms paying creators fairly may become the primary sources of fresh, authoritative content. If implemented effectively, higher payouts could accelerate X's video ambitions, narrowing the gap with YouTube. However, in execution, without matching YouTube's scale in ads or views, X may need to subsidize losses initially, a strategy Musk has employed elsewhere. --- Information Sources: - [WatcherGuru/ X](https://x.com/WatcherGuru/status/2006085486419288174) - [Iketan86/ X](https://x.com/iketan86/status/2006096117373735015) - [Blockchain News](https://blockchain.news/ainews/x-increases-creator-payouts-and-deploys-ai-fraud-detection-to-enforce-fairness-in-2025)

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