X Bans Revealing Image Edits, Paywalls Grok AI Image Generation - DTH

AI chipmaker Cerebras has secured a massive $10 billion partnership with OpenAI to supply computing power through 2028, while consumer giants Spotify and Tesla simultaneously announced major shifts to their pricing and subscription models to boost recurring revenue. These developments, alongside strict new regulatory enforcement in Australia and California, mark a significant day of restructuring across the technology and artificial intelligence sectors.

Key Points

• Cerebras signed a $10 billion agreement to provide OpenAI with 750 megawatts of computing power, positioning itself as a stronger rival to Nvidia.
• Spotify initiated its third price hike since 2023, raising the U.S. Premium Individual plan to $12.99 and Family plans to $21.99.
• Tesla eliminated the one-time purchase option for Full Self-Driving (FSD), moving exclusively to a subscription model to drive adoption.
• Major social platforms deactivated 4.7 million underage accounts in Australia following the country's world-first ban on social media for children under 16.

Major Shifts in AI Infrastructure and Pricing

In a move that underscores the insatiable demand for AI compute, Cerebras finalized a $10 billion deal with OpenAI. Under the terms of the agreement, Cerebras will supply 750 megawatts of computing power through 2028. This partnership provides OpenAI with a dedicated low-latency inference solution essential for real-time AI processing. For Cerebras, the deal represents a critical diversification of its client base, moving away from its previous reliance on the UAE’s G42, as the company prepares to refile for its initial public offering following a $1.1 billion capital raise.

Simultaneously, Spotify is testing the limits of consumer price elasticity with its third price increase for U.S. subscribers since 2023. The changes, which also affect users in Estonia and Latvia, see the U.S. Individual plan rising from $11.99 to $12.99, and the Family plan jumping from $19.99 to $21.99. Student and Duo plans are also seeing $1 and $2 increases, respectively.

The company stated these changes reflect the value delivered and enable the company to offer the best experience and benefits to artists.

Tesla Pivots to Subscription-Only FSD

Tesla CEO Elon Musk confirmed the discontinuation of the one-time purchase option for the company's Full Self-Driving (FSD) software. The feature is now available exclusively via a monthly subscription. This strategic pivot aims to increase FSD adoption rates, which currently sit at a low of 12 percent.

By lowering the barrier to entry with a $99 monthly price point—rather than a steep upfront cost—Tesla aims to improve recurring revenue metrics critical to Musk's compensation package. Furthermore, legal analysts suggest this shift to a subscription-only model may limit the automaker's liability amidst ongoing lawsuits and regulatory scrutiny regarding the software's actual capabilities.

Regulatory Compliance and Safety Measures

Global regulatory pressure is forcing rapid operational changes across social platforms. Following the California Attorney General's investigation into inappropriate AI-generated content, X (formerly Twitter) implemented technological blocks to prevent users from editing images of real people in revealing clothing. Additionally, the platform has moved its Grok AI image generation features behind a paywall and will geographically block the generation of specific imagery where illegal.

In Australia, the impact of the December 10, 2025 ban on social media for children under 16 is already visible. According to the eSafety Commissioner, platforms including Meta, TikTok, and X deactivated approximately 4.7 million underage accounts within the first month. This high compliance rate is attributed to the threat of substantial fines, which can reach up to $33 million USD ($49.5 million AUD). While compliance has exceeded estimates, the Commissioner noted that full implementation of age assurance technology remains an ongoing process.

Product Evolutions and Relaunches

Google continues to weave its Gemini AI into its ecosystem. The company is reportedly testing "Glick," a Gemini integration for Chrome on Android designed to bring agentic capabilities to mobile browsing, such as summarizing pages and answering contextual questions. Concurrently, Google updated its Trends Explore page with Gemini-powered analysis to reduce manual research time for marketers and data analysts.

Finally, Digg, once a dominant force in social news aggregation, has relaunched in open beta. Led by returning founders Kevin Rose and Reddit co-founder Alexis Ohanian, the revamped platform mirrors Reddit’s structure but emphasizes advanced AI verification to combat toxicity. The team plans to roll out rapid weekly updates focused on community customization and third-party integrations to secure product-market fit in a crowded landscape.

As 2026 progresses, the industry will likely see further consolidation of AI infrastructure deals and a continued trend of hardware and software companies shifting toward recurring revenue models to satisfy investor demands for predictable growth.