X open sources Grok-powered algorithm as regulatory pressure mounts globally

Reviewed byNidhi Govil

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Elon Musk's X released the code behind its new AI-driven recommendation algorithm on GitHub, revealing a Grok-based transformer architecture that decides what users see. The move toward transparency arrives amid a €120 million EU fine for deceptive practices and service bans in Indonesia and Malaysia over deepfake content generated by Grok.

X Algorithm Reveals Grok-Powered Transformation

Elon Musk's social network X has released the code and architecture of its overhauled social recommendation algorithm under an Apache 2.0 open source license on GitHub, allowing commercial usage and modification

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. The X algorithm, which determines what posts and accounts appear in users' feeds, now relies on a transformer architecture powered by xAI's Grok AI language model rather than the manual heuristic rules that governed the platform previously

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Source: VentureBeat

Source: VentureBeat

"We have open-sourced our new 𝕏 algorithm, powered by the same transformer architecture as xAI's Grok model," X's engineering team announced

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. Elon Musk himself acknowledged the system's shortcomings, tweeting that "the algorithm is dumb and needs massive improvements, but at least you can see us struggle to make it better in real-time and with transparency"

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. He pledged to update the algorithm every four weeks with comprehensive developer notes.

How the Machine Learning Algorithm Works

The GitHub repository details a complete architectural overhaul internally dubbed "Phoenix." According to documentation, X has eliminated "every single hand-engineered feature" from its ranking system

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. The new system retrieves content from two sources: in-network posts from accounts users follow and out-of-network posts discovered through machine learning-based retrieval, combining both through a scoring system that predicts engagement probabilities for each post

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The architecture includes Thunder, a pipeline for fetching in-network posts, and Phoenix Retrieval, a vector-based system that finds out-of-network content by matching semantic similarities

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. Both feed into the Phoenix Scorer, a model derived directly from the Grok-1 architecture that analyzes a user's sequence of historical actions to predict the probability of 15 different future interactions.

Source: Decrypt

Source: Decrypt

Critical Insights for Business Strategy

Community analysis of the open-source code reveals a strict "Velocity" mechanic that determines post performance within the first 30 minutes

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. If engagement signals like clicks, dwells, and replies fail to exceed a dynamic threshold in the first 15 minutes, posts are mathematically unlikely to reach the general For You feed

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. This represents a fundamental shift in content strategy for brands operating on the platform.

Grok itself analyzed the algorithm and identified five key factors driving visibility: engagement predictions based on user history for likes and reposts, content novelty and relevance with timely personalized posts scoring higher, diversity scoring that limits repeated authors, a balance between followed accounts and ML-suggested posts, and negative signals from blocks and mutes that lower scores

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Notably, X's Head of Product Nikita Bier stated that "Replies don't count anymore" for revenue sharing, designed to kill "reply rings" and spam farms

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. Replies only generate value if they are high-quality enough to generate "Home Timeline impressions" on their own merit, fundamentally changing user engagement tactics.

Transparency Meets Regulatory Backlash

The open-source release arrives during intense regulatory scrutiny. The European Commission levied a €120 million fine under the Digital Services Act, citing three specific transparency failures

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. Regulators found that X's blue check system operates as a "dark pattern" by allowing anyone to purchase verification without ID checks, deceiving users about account authenticity. The platform also failed to provide a searchable, transparent archive of advertisements and refused to grant academic researchers access to public data

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Source: Digit

Source: Digit

AI Initiatives Face Safety Crisis

Both Indonesia and Malaysia temporarily blocked access to Grok following a surge in non-consensual sexualized images, with users exploiting Grok's image generation capabilities to create deepfake pornography

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. The Indonesian Ministry of Communication and Informatics cited a "complete lack of effective guardrails" in Grok 2.0, while the UK's communications regulator Ofcom launched a formal investigation threatening similar blocks.

Last week, X revoked API access for InfoFi projects that rewarded users for platform engagement, with Bier declaring the company would "no longer allow apps that reward users for posting on X" due to AI-generated spam concerns

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. The platform also restricted Grok's image generation and editing features to paid subscribers only and implemented technical measures to prevent editing images of real people.

Industry Impact on Recommendation Systems

Midhun Krishna M, co-founder and CEO of LLM cost tracker TknOps.io, suggested the release could change industry standards. "By exposing the Grok-based transformer architecture, X is essentially handing developers a blueprint to understand, and potentially improve upon, recommendation systems that have been black boxes for years," he told Decrypt . "This level of transparency could force other platforms to follow suit or explain why they won't."

However, the shift to a pure-AI model raises questions about practical transparency. While developers can inspect the code that trains the model, they cannot see the billions of weights inside the model that actually decide why specific posts go viral

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. The specific weighting constants that reveal exactly how much a Like or Reply is worth have been redacted from this release

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, limiting the practical utility for brand safety and content strategy optimization.

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