X Releases Core Algorithm Code Amid Global Regulatory Pressure

The move comes as the company faces mounting pressure from regulators worldwide over content moderation, artificial intelligence safety, and cryptocurrency-related activity.

On January 10, 2026, Musk announced the algorithm would be open-sourced within seven days. The code was released on January 20, with X’s engineering department confirming “We open-sourced our new X algorithm” through the company’s official accounts. Musk promised to update the code every four weeks with detailed developer notes explaining what changed.

How the Algorithm Works

The newly released code reveals sophisticated machine learning models that determine content visibility on the platform. The algorithm uses transformer-based architecture powered by xAI’s Grok AI model, written primarily in Rust and Python. It processes over 100 million posts daily to narrow down approximately 1,500 highly relevant posts for each user’s “For You” feed.

Unlike previous systems that relied on manually set rules, X’s algorithm now uses end-to-end machine learning. It analyzes user behavior including likes, reposts, and viewing time to predict what content will generate the most engagement. The system also introduces “promptable” feeds, allowing users to input natural language commands like “Show me more tech innovations, less politics” to customize their experience.

Source: @elonmusk

The GitHub repository contains the code that determines both organic post rankings and advertising recommendations, fulfilling Musk’s promise of full transparency for the platform’s content selection process.

Regulatory Pressure Mounts

The algorithm release comes during intense scrutiny from European authorities. On December 5, 2025, the European Union fined X €120 million ($140 million) for violating Digital Services Act transparency requirements. The fine targeted the platform’s “blue checkmark” subscription model and its lack of transparency regarding the ad repository.

The EU also extended a retention order requiring X to preserve all documents related to its algorithms and handling of illegal content through the end of 2026. French prosecutors launched an investigation in July 2025 into alleged algorithm abuse and fraudulent data extraction. X called the French probe “politically-motivated” and argued it threatens free speech on the platform.

Cryptocurrency Content Controversy

A major issue emerged around the algorithm’s treatment of cryptocurrency content. CryptoQuant founder Ki Young Ju reported that on January 9, 2026, the platform saw 7.75 million crypto-related posts in a single day—a 1,224% increase compared to normal activity levels. Most of this surge came from AI-generated bot spam.

The flood of automated posts forced X’s algorithm to treat all crypto content as suspicious, even from legitimate users. Crypto entrepreneur Lisa Edwards reported that a December 2025 algorithm update caused posts containing cryptocurrency tickers like $BTC or $ETH to trigger reduced visibility. Common crypto phrases such as “to the moon” and “100x” were being flagged as spam, with some posts buried for weeks.

Many crypto content creators reported their reach dropping by 80% overnight. Technical analysis and price charts—core content for crypto traders—saw massive visibility reductions. X’s Head of Product Nikita Bier argued that crypto users were wasting their daily reach with low-value posts like repeated “gm” (good morning) replies. The crypto community strongly disagreed, accusing X of deliberately suppressing legitimate cryptocurrency content.

Grok AI Deepfake Crisis

The algorithm release coincided with a global crisis involving Grok, X’s AI chatbot. The tool’s image editing feature allowed users to generate non-consensual sexualized images of women and minors. Content analysis firm Copyleaks reported Grok was generating roughly one non-consensual sexualized image per minute, each posted directly to X.

The controversy sparked immediate action from governments worldwide. Indonesia and Malaysia became the first countries to block Grok entirely in January 2026. The European Commission ordered X to retain all Grok-related documents until the end of 2026. UK regulator Ofcom launched a formal investigation, warning that X could face a ban or multimillion-pound fine. India ordered a comprehensive review, while France expanded its investigation to include Grok-generated child sexual abuse material.

California Attorney General Rob Bonta sent a letter demanding xAI immediately stop sharing sexual deepfakes, stating the content violated state laws related to public decency and a new “deepfake” pornography law that took effect January 1, 2026.

Questions About Long-Term Commitment

While the algorithm release represents a significant transparency move, skepticism remains about X’s commitment to maintaining the code. In March 2023, X (then Twitter) published algorithm code on GitHub but never updated it despite making numerous changes to the system over time. Similarly, xAI released Grok-1’s code in 2024 but hasn’t updated the repository in nearly two years, even though the company now operates Grok-3.

The current algorithm repository’s usefulness depends entirely on whether X follows through with promised monthly updates. Without regular maintenance, the code could quickly become obsolete like previous open-source attempts.

The Transparency Gambit

X’s open-sourcing effort tests whether radical transparency can coexist with algorithmic control of social media. By exposing the code, X invites external audits and potentially sets a precedent for competitors. However, the company must balance this openness with ongoing regulatory challenges, crypto community concerns, and the Grok AI safety crisis.

The coming months will reveal whether this transparency initiative represents genuine accountability or simply another unfulfilled promise in the rapidly evolving landscape of social media governance.