Bluesky has recently emerged as a major contender in the social media space, gaining traction after the presidential election earlier this month. The platform challenges industry giants like Elon Musk’s X and Meta’s Threads with its open-source foundation and unique design. CEO Jay Graber has described Bluesky as “billionaire proof,” for its acquisition efforts and commitment to user autonomy.
In an interview with CNBC’s Money Movers, Graber explained that Bluesky’s structure allows users to leave the platform without losing their connections, a feature that sets it apart from competitors. “The billionaire proof is in the way everything is designed, and so if someone bought or the Bluesky company went down, everything is open source,” she said.
“What happened to Twitter couldn’t happen to us in the same ways, because you would always have the option to immediately move without having to start over.”
This approach was partly inspired by the upheaval at Twitter, now X, following Musk’s 2022 acquisition, which led millions of users to seek alternatives. Despite Bluesky’s current user base of over 21 million dwarfed by Threads’ 275 million and X’s estimated 318 million monthly users, the platform’s philosophy resonates with many seeking a more open and transparent social media experience.
Bluesky’s journey began in 2019 as an internal Twitter initiative under Jack Dorsey’s leadership. By 2022, it became an independent public benefit corporation, driven by a mission to decentralize social media. Graber reflected on Dorsey’s role in its development: “In 2019, Jack had a vision for something better for social media, and so that’s why he chose me to build this… We’re building an open-source social network that anyone can take into their own hands and build on.”
The platform’s business model diverges from traditional advertising-driven strategies. Instead of algorithmically recommended ads, Bluesky plans to offer premium features through subscriptions and expand services for third-party developers. Graber emphasized, “We’re not going to build an algorithm that just shoves ads at you, locking users in. That’s not our model.”
Bluesky’s growth has been marked by pivotal moments, including a surge of 2 million users in September after X faced legal challenges in Brazil over content moderation policies. In October, the company raised $15 million in funding led by Blockchain Capital, bringing its total funding to $36 million.
As Bluesky moves forward, its commitment to decentralization, transparency, and user control positions it as a good alternative in the social media landscape. However, whether it can sustain this reputation and compete with established giants remains an open question.