A New Frontier in Monetization

Reddit has always been a unique player in the digital landscape, operating primarily as a platform for user-generated content. With over 100,000 active communities, or subreddits, and more than 76 million daily users, the platform generates a massive amount of data. This data, rich with real-time discussions, opinions, and interactions, has become a goldmine for companies developing AI and machine learning models.

In 2023, Reddit began exploring ways to monetize this data, launching data licensing deals with major tech companies, including Google. These agreements allow AI companies to access Reddit’s data through APIs for training their models. According to a recent Securities and Exchange Commission (SEC) filing, Reddit expects to generate $66.4 million from these data licensing agreements in 2024 alone. Over the next three years, Reddit anticipates bringing in $203 million from AI data licensing, marking a significant new revenue stream for the company.

“We suspected that Reddit would come out strong out of the gates, and Reddit exceeded our bullish expectations,” said Mark Shmulik, an analyst at Bernstein. “Reddit appears to be reaping the benefits of a strong digital ad market, buoyed by some ‘free’ IPO marketing, alongside increased traffic courtesy of their new favorite AI partner Google.”

The Strategic Value of Reddit’s Data

The value of Reddit’s data lies in its breadth and depth. Unlike other social platforms that focus on personal networks, Reddit’s content is organized around topics, making it particularly valuable for AI companies looking to train models on specific subjects. From discussions on niche technical topics in subreddits like r/AskEngineers to cultural debates in r/AskReddit, the platform offers a vast array of data that can be used to train AI models in natural language processing, sentiment analysis, and more.

“Reddit’s massive trove of conversational data is expected to help train and improve large language models (LLMs),” noted Sramana Mitra, CEO of the One Million by One Million (1Mby1M) Global Virtual Accelerator. “This isn’t just about quantity—it’s about the quality and diversity of interactions that AI companies can tap into.”

Moreover, Reddit’s data is continuously updated, providing real-time insights into emerging trends and behaviors. This dynamic nature of the data is particularly appealing for applications like behavioral analysis and algorithmic trading, where understanding the latest shifts in public sentiment can be crucial.

“Reddit data constantly grows and regenerates as users come and interact with their communities and each other,” Reddit stated in its SEC filing. This continuous stream of data is a key selling point for AI companies that need the latest information to refine their models.

The Financial Impact

Reddit’s pivot to data licensing is already paying off. In its first quarter as a publicly traded company, Reddit reported a 54% increase in revenue, reaching $281 million, surpassing market expectations. While online advertising remains Reddit’s largest revenue stream, accounting for $253.1 million, the data licensing segment saw a staggering 691% growth, contributing $28.1 million to the company’s top line.

This rapid growth in data licensing revenue is a clear indicator of the market’s appetite for high-quality data sources for AI training. As more companies enter the AI space, the demand for Reddit’s data is likely to increase, providing the platform with a stable and growing revenue stream.

“The company’s more than 100,000 discussion forums, or subreddits, filled with user-generated content topics ranging from history to gaming have made it an attractive partner for companies looking to train their data-hungry AI models,” commented a Piper Sandler analyst.

Navigating Legal and Ethical Challenges

While Reddit’s data licensing strategy is driving revenue growth, it also raises important legal and ethical questions. The practice of using public web data to train AI models has been a contentious issue, with debates over whether such data usage constitutes “fair use” under copyright law. Reddit, aware of these challenges, has emphasized that its data licensing agreements are meant to provide a legitimate, controlled way for companies to access its data.

“Some companies have constructed very large commercial language models using Reddit data without entering into a license agreement with us,” Reddit noted in its SEC filing, highlighting the murky legal landscape. The platform has vowed to “vigorously enforce” its rights against unauthorized data scraping, though it acknowledges that such enforcement could be costly and time-consuming.

The potential for legal battles over data usage is significant, particularly as the AI industry continues to grow. However, the existence of licensing agreements like those Reddit has struck could influence how courts view the practice of scraping public data for AI training. As legal analysts Timothy Lee and James Grimmelmann pointed out, “The more [AI data licensing] deals like this are signed, the easier it will be for the plaintiffs to argue that the ‘effect on the market’ prong of fair use analysis should take this licensing market into account.”

Looking Ahead: A Double-Edged Sword

While data licensing presents a lucrative opportunity for Reddit, it also poses risks. The platform has acknowledged that the rise of AI-powered tools could ultimately compete with Reddit as a source of information. Users may increasingly turn to AI models like ChatGPT or Google’s Gemini for answers, bypassing Reddit entirely.

“Some users are also turning to LLMs such as ChatGPT, Gemini, and Anthropic for seeking information,” Reddit stated, placing these AI tools in the same competitive category as “Google, Amazon, YouTube, Wikipedia, X, and other news sites.”

This competition underscores the importance of Reddit continuing to innovate in how it engages its user base and monetizes its content. While AI data licensing is a strong growth driver now, Reddit must balance this with efforts to enhance the user experience and maintain its position as a go-to platform for online discussions.

Monetization in the Age of AI

Reddit’s foray into data licensing marks a significant shift in its monetization strategy, one that is driving impressive revenue growth and positioning the platform as a key player in the AI data ecosystem. However, as Reddit navigates this new terrain, it must carefully manage the legal and ethical challenges that come with it, while also preparing for the potential impact of AI on its own user base.

As the demand for high-quality data continues to rise, Reddit’s unique position as a vast repository of public discourse offers it a powerful advantage. But success will depend on the platform’s ability to balance the short-term gains of data licensing with the long-term health of its community and business model. For now, Reddit’s move into AI data monetization is proving to be a smart bet, one that could redefine how social platforms generate revenue in the age of AI.

Yet, how do you choose the right one? Below will walk you through the top qualities cloud-based accounting software should possess. From ease of use to automation capabilities, you will understand what truly matters and make an informed choice that takes your business to new levels.

1. Ease of Use

Ease of use is paramount when selecting cloud-based accounting software. A user-friendly interface can make the transition smoother for your team, reducing the learning curve.

Look for an intuitive system with clearly labeled features and simple navigation. Additionally, the software should offer quick setup and seamless integration with your existing systems. 

Access to customer support is also crucial. If you encounter issues or need guidance, prompt and helpful support can save you time and effort. Remember, software should simplify your tasks so you can maintain high productivity.

Consider QuickBooks, for instance. Its intuitive interface, with a clearly marked table and easy navigation, makes it a favorite among users. Sage Business Cloud also smoothly integrates with numerous third-party apps, and FreshBooks offers comprehensive support through multiple channels, ensuring help is at your fingertips when needed.

2. Scalability

Scalability in cloud-based accounting software is essential, ensuring it grows with your business. This flexibility is vital across various sectors. This year, plans to invest in such software are on the rise, with about 52% of nonprofits, 58% of education organizations and 57% of government bodies intending to do so.

One example that offers scalable solutions is NetSuite, providing small businesses with the resources they need while also accommodating large corporations with more complex requirements.

Meanwhile, software like Zoho Books provides flexible pricing plans, allowing businesses to upgrade as they expand. Therefore, always choose software with the capacity to adapt to your business’s evolving needs.

3. Security

Security is another key aspect when choosing cloud-based accounting software. You are entrusting the software with sensitive financial data, so robust protection is non-negotiable.

Look for features such as data encryption, which scrambles your information to make it unreadable to unauthorized users. Another feature it should have is two-factor authentication, which adds an extra layer of security by requiring a second verification step.

Additionally, data backup and recovery are essential. Sage Business Cloud, for instance, regularly backs up your data and allows for easy recovery in case of loss. In a world where cyberattacks are a significant threat to businesses, prioritizing security is crucial.

4. Mobility

With the world being highly interconnected and fast-paced, mobility in cloud-based accounting software is game-changing because it provides the flexibility to manage your finances. For instance, FreshBooks offers a mobile app with a range of functionalities, from tracking expenses to creating invoices.

Similarly, QuickBooks’ mobile app provides real-time updates, ensuring you are always informed about your business’s financial health. This kind of on-the-go access can enhance efficiency, allowing you to make quick, informed decisions.

When choosing your cloud-based accounting software, consider the mobile features it offers. Your business does not stop when you are away from your desk, nor should your software.

5. Comprehensive Reporting

Comprehensive reporting is another important quality to consider in cloud-based accounting software. Detailed and customizable financial reports give you a clear picture of your business’s financial health. 

Real-time reporting should also aid your decision, as it is beneficial in delivering up-to-the-minute financial data. Look for a variety of report types, such as profit and loss statements, balance sheets and cash flow forecasts. Sage Business Cloud offers these and more.

With comprehensive reporting, you can make informed business decisions, so ensure your chosen software delivers in this aspect.

6. Integration Capabilities

The ability to integrate with other business tools is a critical quality of a good cloud-based accounting software. This feature enhances productivity by enabling seamless data flow between systems. 

For example, software like QuickBooks integrates with apps like PayPal and Shopify, simplifying the tracking of sales and payments. Xero, too, boasts integration capabilities, connecting with over 800 third-party apps, including those for inventory management, CRM and time tracking.

Such integration reduces manual data entry and potential errors, making your business operations more efficient. When choosing your software, consider how well it plays with other tools you depend on to make the most of its integration abilities.

7. Cost-Effectiveness

Cost-effectiveness is a key consideration when selecting your cloud-based accounting software. Understanding the pricing structure becomes even more important in light of recent industry trends. Once lauded for its rapid growth during the pandemic, the cloud computing industry now shows signs of deceleration. Rising costs have raised concerns for many businesses, with some high-profile companies even scaling back their commercial cloud investments.

This context underscores the importance of assessing not just the upfront cost of the software but also its long-term financial implications. Consider the value for money, with some solutions offering time-saving features, like automatic billable time tracking, boosting their cost-effectiveness.

For instance, while software like QuickBooks might seem pricey at first glance, its comprehensive capabilities could lead to significant savings over time. Ultimately, the goal is not to find the cheapest software but the one that provides the greatest value for your investment.

8. Customer Support

Customer support is a vital feature to consider in cloud-based accounting software, as efficient, readily available support can enhance your user experience — especially when issues arise.

For example, Xero offers round-the-clock email support, ensuring assistance is always within reach. Sage Business Cloud provides multiple support channels for support, including live chat, email and phone. Additionally, access to online resources and self-help options, like a comprehensive knowledge base and community forums, can offer invaluable troubleshooting assistance.

When choosing your software, remember the importance of robust customer support. It can significantly improve your user experience. 

9. Automation Capabilities

Automation capabilities are a major advantage of cloud-based accounting software, as these features can significantly improve efficiency and accuracy. For instance, FreshBooks is great for automating tasks like invoicing and expense tracking — freeing up your time for other business activities.

Moreover, other types of software leverage machine learning and artificial intelligence (AI) to automate processes like bank reconciliation. This is vital in saving time while also minimizing manual errors.

Automation can transform the way you manage your finances, making it more streamlined and less labor-intensive. So when selecting your software, consider how its automation capabilities can benefit your business.

Choosing the Right Cloud-Based Accounting Software for Your Business

Choosing the right cloud-based accounting software is a critical step that can significantly impact your business’s success. From the ease of use and scalability to robust security and automation capabilities, the qualities mentioned here are essential to consider.

Keep in mind that your software should be a partner in your business, not just a tool. It should simplify tasks, provide valuable insights and ultimately drive your business growth.

Now that you are armed with this knowledge, you are ready to find the perfect software solution for your business. Make an informed choice, take the plunge, and watch your business soar to new heights.

Ware explained that the decline in iPhone sales, particularly in critical markets like China, poses a serious concern for Apple. “It is a concern,” he said, referring to Apple’s competition in China, which represents a substantial portion of the company’s overall business. Ware highlighted Apple’s resilience despite these challenges, supported by solid performance in other segments. “Fortunately, there is a notable offset in the wearables category, which is growing,” Ware noted, pointing to the broader diversification of Apple’s revenue streams.

Amid these financial shifts, Ware emphasized the critical role of artificial intelligence (AI) in Apple’s future strategy. The tech community is enthusiastic about what could be a major reveal of Apple’s AI strategy at the upcoming Worldwide Developers Conference (WWDC) in June. “Apple is one of the large mega tech companies which have not yet articulated an AI strategy,” Ware stated, underscoring the high expectations from investors and industry watchers alike.

Ware detailed potential applications and the importance of AI integration across Apple’s suite of products and services. “Investors want to know,” he asserted, referencing Apple’s acquisition of Darwin AI in March and potential partnerships, such as with Google on projects like Gemini. “Apple is working on AI. We need to see what that story looks like.”

The conversation turned to the expected impact of AI on Apple’s product lines, from the iPhone to the App Store. “It can show up in the iPhone 16 or in the App Store,” Ware speculated. He highlighted that the real focus for the upcoming quarter would be how Apple plans to integrate AI to enhance user experiences and operational efficiency. “There will be a lot of focus on that in the quarter,” he added.

Ware also touched on Apple’s regulatory challenges, particularly in China, where the government has issued advisories against using Apple phones. While acknowledging these issues, Ware downplayed their immediate impact. “Not so much,” he responded when asked about his concerns regarding regulation. “Apple antitrust is a headline risk. It hit the stock, but it has been sideways since the report came out. This is a multi-year work in the courts and will probably not lose in our view.”

As Apple gears up for its annual developer conference, the industry is on the edge, waiting to see how the company will navigate its AI journey. Ware’s insights suggest that while challenges remain, particularly in hardware sales, Apple’s strategic pivot towards AI and continued service innovation could define its path forward in the evolving tech landscape.

According to Bloomberg, the company recently hired Michel Del Buono as chief investment officer. His duties will include overseeing a range of wealth-management services.

Providing wealth-management services could be a highly profitable business for the firm. Companies usually charge 1% of a client’s assets, with profits reaching as high as 50%.

While a16z did confirm Del Buono’s hiring to Bloomberg, it declined to comment on any future business plans.

Peloton has been struggling after being the darling of the pandemic bubble. As people sheltered and quarantined at home, the company’s fortunes skyrocketed, only to come crashing back down as things returned to normal. The company clearly hopes Coddington can help get things back on track.

Coddington formerly served as VP of Finance for Amazon Web Services. She will begin her job at Peloton on June 13. According to a regulatory filing, Coddington’s compensation will include an annual salary of $1 million, as well as $9 million in stock equity. The company will also provide $150,000 for relocation.

Coddington served as VP at Amazon since January 2021, and worked at the company for a total of six years. Prior to that, she held senior leadership roles at Adara, Walmart, and Netflix.

“Liz is a deeply talented finance executive and will be an invaluable addition to Peloton’s leadership team,” said Peloton CEO Barry McCarthy. “Having worked at some of the strongest and most recognizable technology brands, she not only brings the expertise needed to run our finance organization, but she has a critical understanding of what it takes to drive growth and operational excellence. I have seen her intellect, abilities, and leadership firsthand and am excited to work closely with her as we execute the next phase of Peloton’s journey.”

Microsoft is locked in a high-stakes battle to complete an acquisition of Activision Blizzard, which was first announced in January 2022. The deal has been scrutinized on both sides of the Atlantic, with the EU eventually signing off on it and the UK voting to block it. Meanwhile, in the US, the FTC has sued to block the deal, with a judge granting a temporary restraining order to prevent it from moving forward until a final decision can be made.

According to Axios, lawyers in a separate case say they’ve found the smoking gun that proves Microsoft’s goal is the elimination of its biggest competition. The case was brought by a group of gamers concerned with the deal. The case is being presided over by the same judge that granted the FTC the temporary restraining order to block the deal.

While the email is redacted, it is reportedly from Xbox game studio head Matt Booty to Xbox CFO Tim Stuart. Lawyers say it is “uncontroverted evidence that Microsoft had the intention to put its main competition, the Sony PlayStation, out of the market.”

Interestingly, while Microsoft could not legally share an unredacted copy of the email, the company did tell Axios that the email exchange occurred in 2019, a couple of years before the company announced its bid to purchase Activision.

The timeline clearly precludes the email’s use in direct relation to the Activision deal; however, the lawyers in question will no doubt try to use it to establish a pattern of behavior on Microsoft’s part. The lawyers will no doubt argue that the email proves Microsoft’s over-arching goal is to destroy PlayStation, and the Activision deal is simply the latest and boldest attempt to do so.

Revolut is a UK-based fintech company in the banking industry. The company recently had an independent audit, with the auditor warning that it could not verify three-quarters of the company’s 2021 revenue, according to the Evening Standard.

“I am grateful for the opportunity to serve as group CFO at Revolut and remain confident in the firm’s future successes,” Salovaara said in a statement.

Salovaara’s departure does little to answer questions raised during the company’s audit when auditor BDO said some of Revolut’s account information could be “materially misstated.” The auditor went on to note that it could not verify £477 million in revenue, saying that Revolut’s “IT systems weren’t designed in such a way that would allow for IT or business process controls to be effectively tested throughout the year.”

Salovaara previously told Reuters the issue was a non-factor, despite the company filing its accounts two months after the deadline due to the ‘accounting systems needing replacement.’

“There is not any doubt over the completeness of the balance sheet, which, in turn, logically means that total revenue is also correct,” he said at the time.

Revolut has likewise tried to reassure everyone that there is no issue, saying its revenue “was not in question” and concerns raised by the audit were “remedied in 2021.”

As the Evening Standard points out, Revolut is trying to get a UK banking license. It remains to be seen how the results of the audit will impact the process.

Apple reported $94.8 billion in revenue, beating analysts expectations of $92.96 billion. Similarly, earnings per share came in at $1.52, beating expectations of $1.43. Revenue was down 3% year over year, but EPS was flat.

“We are pleased to report an all-time record in Services and a March quarter record for iPhone despite the challenging macroeconomic environment, and to have our installed base of active devices reach an all-time high,” said Tim Cook, Apple’s CEO. “We continue to invest for the long term and lead with our values, including making major progress toward building carbon neutral products and supply chains by 2030.”

“Our year-over-year business performance improved compared to the December quarter, and we generated strong operating cash flow of $28.6 billion while returning over $23 billion to shareholders during the quarter,” said Luca Maestri, Apple’s CFO. “Given our confidence in Apple’s future and the value we see in our stock, our Board has authorized an additional $90 billion for share repurchases. We are also raising our quarterly dividend for the eleventh year in a row.”

Apple expects June’s quarter to look similar.

“We expect our June quarter year-over-year revenue performance to be similar to the March quarter assuming that the macroeconomic outlook does not worsen from what we are projecting today for the current quarter,” Maestri said on a call with analysts, via CNBC.

Pichai has been under fire for some time as Alphabet/Google face threats on all sides. The company is facing antitrust challenges, was upstaged by Microsoft in the AI market, is facing a resurgent Bing, is dealing with a soft advertising market, and the company’s stock price has plummeted since its high in late 2021.

Amid these challenges, Alphabet did something that would have been unthinkable in years past, laying off some 12,000 employees. Even the layoffs were bungled, with some employees not being notified they were impacted and others saying the company is not honoring previous agreements.

Adding insult to injury, while 12,000 employees were being shown the door, Pichai reaped a handsome $226 million in compensation. Needless to say, that detail is not going over well with Googlers, with many circulating memes making fun of the embattled CEO, according to CNBC.

One meme showed Shrek villain Lord Farquaad with the caption: “Sundar accepting $226 million while laying off 12k Googlers, cutting perks, and destroying morale and culture.” A Lord Farquaad quote read, “some of you may die, but that is a sacrifice I am willing to make.”

Another meme making its rounds on the company discussion boards highlighted CFO Ruth Porat’s email recent email outlining “multi-year” cuts to employee perks, saying: “Ruth’s cost savings applied to everyone… except our hardworking VPS and CEO.”

See Also: Google CEO Criticized For Response to AI Researcher’s Exit

In all fairness, many of Pichai’s counterparts at other companies have voluntarily taken pay cuts, including those who have not laid off thousands of employees. Apple CEO Tim Cook asked the board to lower his pay by 40%, despite the fact that Apple is the only Big Tech company that has not engaged in mass layoffs.

This isn’t the first time Pichai’s leadership has become the laughingstock of the company. When Google rushed to unveil its Bard chatbot, with disastrous results, employees circulated memes making fun of Pichai and other executives.

“Sundar, and leadership, deserve a Perf NI,” read a popular meme, referencing the lowest employment performance review category. “They are being comically short sighted and un-Googlely in their pursuit of ‘sharpening focus.’”

Pichai’s behavior also helped lead to Google being sanctioned by the judge presiding over one of its antitrust cases, with the judge finding that Pichai and Company did not properly preserve internal communications despite there being a foreseeable threat of litigation.

Google co-founders Larry Page and Sergey Brin recently became re-involved in company affairs in an effort to help Google come up with an answer to Microsoft’s AI efforts.

Given Pichai’s performance or lack thereof, one can’t help but wonder how long it will be until Larry Page and Sergey Brin return on a more permanent basis. If Pichai can’t right the ship and regain the respect of his employees, that day may be coming sooner rather than later.

Intel reported $11.7 billion in revenue in its first quarter, a 36% decline year-over-year. Losses per share came in at $0.04 adjusted, a 133% annual decline and the worst quarterly performance in the company’s history, according to CNBC. Despite the historic pounding, the results were actually slightly better than analysts expected.

“We delivered solid first-quarter results, representing steady progress with our transformation,” said Pat Gelsinger, Intel CEO. “We hit key execution milestones in our data center roadmap and demonstrated the health of the process technology underpinning it. While we remain cautious on the macroeconomic outlook, we are focused on what we can control as we deliver on IDM 2.0: driving consistent execution across process and product roadmaps and advancing our foundry business to best position us to capitalize on the $1 trillion market opportunity ahead.”

“We exceeded our first-quarter expectations on the top and bottom line, and continued to be disciplined on expense management as part of our commitment to drive efficiencies and cost savings,” David Zinsner, Intel CFO. “At the same time, we are prioritizing the investments needed to advance our strategy and establish an internal foundry model, one of the most consequential steps we are taking to deliver on IDM 2.0.”

Moving forward, CNBC reports that Intel expects to lose $0.04 per share in the second quarter as well, on revenue of $12 billion. Analysts were expecting earnings of $0.01 per share on revenue of $11.75.

Intel has been trying to recapture its spot as the world’s top semiconductor maker, bringing Gelsinger in as CEO to accomplish the job. Once the undisputed king of the industry, Intel has faced growing challenges from TSMC and AMD and has struggled to remain competitive with its rivals’ technical accomplishments.

While Gelsinger has helped Intel make significant progress, the company still has a long way to go.

The company reported $69.8 billion in revenue, an increase of 3% year over year. Revenue beat analysts’ expectations of $69.8 billion. Despite the good news, YouTube advertising was down to $6.7 billion, a drop of 3%.

Google Cloud was a bright spot for the company, turning its first-ever profit. The unit generated $7.45 billion in revenue and $191 million in operating income. Similarly, Google Search accounted for nearly $40.4 billion, up from $39.6 billion year over year.

“We are pleased with our business performance in the first quarter, with Search performing well and momentum in Cloud,” said Sundar Pichai, CEO of Alphabet and Google. “We introduced important product updates anchored in deep computer science and AI. Our North Star is providing the most helpful answers for our users, and we see huge opportunities ahead, continuing our long track record of innovation.”

“Resilience in Search and momentum in Cloud resulted in Q1 consolidated revenues of $69.8 billion, up 3% year over year, or up 6% in constant currency,” Ruth Porat, CFO of Alphabet and Google. “We remain committed to delivering long-term growth and creating capacity to invest in our most compelling growth areas by re-engineering our cost base.”

The US and its allies have cut off Huawei from a wide range of software and hardware over national security and privacy concerns. The bans have had a significant impact on the company’s business, including on its access to the internal software it needs to function.

According to the company’s news release, its new “MetaERP currently handles 100% of Huawei’s business scenarios and 80% of its business volume.” The company says that “MetaERP has already passed the tests of monthly, quarterly, and yearly settlements, while ensuring zero faults, zero delays, and zero accounting adjustments.”

“We were cut off from our old ERP system and other core operation and management systems more than three years ago,” said Tao Jingwen, Huawei’s Board Member and President of the Quality, Business Process & IT Mgmt Dept. “Since then, we have not only been able to build our own MetaERP, but also manage the switch and prove its capabilities. Today we are proud to announce that we have broken through the blockade. We have survived!”

The company says it worked with partner companies to ensure MetaERP supports “advanced technologies, such as cloud-native architecture, metadata-driven multi-tenant architecture, and real-time intelligence.” The company plans to continue creating additional critical business systems that it has control over rather than risking being cut off from additional software it relies on.

“Leaps in technology take a spirit of craftsmanship and years of experience,” said Sabrina Meng, Huawei’s Rotating Chairwoman and CFO. “More importantly, it takes an open mind to drive leaps in the way we think. We wouldn’t have been able to build MetaERP without the support of our partners. Innovation is only possible with an open mind, and thriving is only possible when we work together.”

The announcement comes after Huawei founder Ren Zhengfei called for the company to focus more on software development, saying it was “outside of U.S. control and we will have greater independence and autonomy.”

According to The New York Times, the three former Twitter executives accumulated more than $1 million in legal fees responding to SEC and Justice Department inquiries. The inquiries began before Elon Musk purchased the company, while the executives were still employed by the social media platform.

The executives say they were fired without being paid the compensation and severance they were owed. In addition, the lawsuit alleges that Twitter’s bylaws and existing agreements guarantee that the company will pay legal fees incurred in the line of work.

This isn’t the first time Twitter has been accused of being a deadbeat company when it comes to paying its bills. The company is already facing multiple lawsuits for refusing to pay

“Once again, Twitter has failed to honor its contractual obligations to pay its bills,” Aaron Zamost, a spokesman for Mr. Segal and Ms. Gadde, said in a statement.