Who Owns Bluesky?

Whose Platform Is This, Anyway?

I use Bluesky, and sometimes I pause and wonder: whose platform is this, really?

We're the ones posting. We're the ones reading. We're the ones having conversations in replies. But who runs the servers, designs the algorithms, and makes the final decisions?

Invisible Labor

When we use social media, we think we're "enjoying it for free." But is that really true?

We write posts. We choose photos. We craft replies. We press like. We scroll. All of these actions consume time and attention. If you spend an hour a day on social media, that's 365 hours per year. At $20/hour, that's $7,300 worth of time you're providing "for free."

And there's something else we're providing: data.

What time you posted. Which posts you lingered on. Which links you clicked. Whether you deleted text and rewrote it. Where your cursor hesitated—all of this is recorded, analyzed, and sold to advertisers.

Shoshana Zuboff called this the "shadow text"[^1]. Text we never intended to write. But the algorithm reads it. And turns it into a commodity.

We're not consumers. We're producers. Providing labor and raw materials, unconsciously.

Bluesky Was Supposed to Be Different

Bluesky was created to change that structure.

No ads. No data sales. Algorithms you can choose. Data you can take with you—through a decentralized system called the AT Protocol.

As a principle, it's beautiful. But where does the funding come from?

VCs. Venture capitalists.

In July 2023, Bluesky raised $8 million in seed funding[^2]. In October 2024, it raised an additional $15 million in Series A[^3]. Led by Blockchain Capital, with participation from Alumni Ventures, True Ventures, and others. About $23 million total (roughly $35 million equivalent).

Then in January 2025, further fundraising was reported[^4]. Led by Bain Capital Ventures, at a valuation of approximately $700 million ($1.05 billion equivalent). In just a few months, the valuation skyrocketed.

VC investment isn't debt. There's no repayment obligation. But it demands an exit. IPO (going public) or M&A (acquisition). Within a few years, they expect 10x returns on investment.

So how does Bluesky—with no ads and no data sales—achieve that?

Postponing the Contradiction

The Public Benefit Corporation (PBC) structure is a compromise.

You can declare that you "also pursue public benefit." But the obligation to return profits to shareholders remains. In other words, it's designed to have it both ways: principles and capital.

But can they coexist?

VCs expect returns within a few years. Meanwhile, an SNS that rejects surveillance capitalism is slow to monetize. If you charge fees, users decrease and network effects are damaged. If you don't sell data, you can't use the advertising model either.

Growth or principles. The moment to choose one will come eventually.

When that happens, who decides? Shareholders. And shareholders include VCs. Not us.

Was There Another Path?

Japan has consumer cooperatives.

Members invest, participate in management, and share surplus. One person, one vote. Equal, regardless of investment amount.

What if we applied this to social media?

Annual fee of $50. If 2 million people pay, that's $100 million. It might be enough to cover server costs and developer salaries.

Would that feel "expensive"? But on traditional social media, we've been providing $7,300 worth of time per year and thousands of dollars worth of data "for free." If $50 makes it ours—isn't that cheap?

The problem is that Bluesky has already chosen a different path.

Is There Still Time?

Converting to a cooperative requires existing shareholders' consent.

Why would VCs agree to that? In a cooperative, shares disappear. No IPO, no M&A. The method of recovering investment vanishes.

If there's room for negotiation, it would be for members to buy out VC shares with pooled funds. If VCs hold 20-30% against a $700 million valuation, that's $140-210 million. Even if 2 million people pay $50/year, that's only $100 million. Still not enough.

However, there's the option of gradual buyback. A 10-year plan, 10% per year. If VCs accept it as a "slow but certain exit," it might be possible.

But in reality, until they admit the loss, they'll keep applying pressure: "Add advertising." "Monetize data." "Prioritize growth."

With each new funding round, founders' voting rights dilute. Principles gradually retreat.

This isn't speculation. It's the typical trajectory of principle-driven startups.

Still, There's Possibility

But there is one path.

The AT Protocol is open. It's not exclusive to Bluesky PBC. Anyone can set up their own server and operate under their own rules.

In other words, instead of changing Bluesky, create a separate cooperative-type instance.

Like Mastodon did. Small central organization, with cooperatives and nonprofits in each region running servers. Because they can interconnect, the whole becomes a large network.

Even if Bluesky Inc. turns toward surveillance capitalism, the protocol itself remains. And we can continue to defend our principles on our own instances.

What We Can Do Now

Bluesky is experiencing explosive growth.

Starting with invite-only in February 2024 at about 3 million users[^8], it reached 10 million by September[^9], 13 million in October[^10], 20 million after the 2024 U.S. presidential election in November[^11], 25.9 million by year-end[^12], surpassed 30 million in January 2025[^13], and exceeded 38 million by September 2025[^14].

In just a year and a half, the user base has grown more than tenfold. The momentum of growth attracts even more VCs.

What can be done before the next funding round is decided?

One option is to support subscription implementation. Bluesky has announced consideration of paid plans[^7]. If realized, it could reduce dependence on VCs. Even at $50/year, if 1 million people pay, that's $50 million. That's power to delay the next round.

Another is to start preparing cooperative instances on the AT Protocol now. However Bluesky Inc. changes, the protocol itself belongs to no one. If small cooperatives emerge in Japan, in Europe, in various places, they become the next model.

The Core Question

Can Bluesky become ours?

As things stand, it's difficult. The PBC structure was a compromise between principles and capital. But the compromise may have only postponed the contradiction. Watching the valuation skyrocket and funding rounds proceed one after another, VC influence only grows stronger.

So should we give up?

No. The AT Protocol technology remains.

If we're providing labor and data, then as compensation, we become owners. That's liberation from exploitation.

If this awareness spreads, eventually—someone will start.

Either change Bluesky Inc., or create another instance. Either way, the path exists.

And that becomes proof: "This was possible."

References

[^1]: Shoshana Zuboff, The Age of Surveillance Capitalism: The Fight for a Human Future at the New Frontier of Power, PublicAffairs, 2019

[^2]: TechCrunch, "Bluesky announces its $8M seed round and first paid service, custom domains," July 5, 2023

[^3]: TechCrunch, "Bluesky raises $15M Series A, plans to launch subscriptions," October 24, 2024

[^4]: Business Insider (January 2025) reported that Bain Capital Ventures-led funding at approximately $700 million valuation was in final stages. Multiple media outlets (Cosmico, eMarketer, etc.) also reported

[^7]: Bluesky Official Blog, "Bluesky Announces Series A to Grow Network of 13M+ Users," October 24, 2024. Announced development of subscription models including high-quality video uploads and profile customization

[^8]: Backlinko, "Bluesky Statistics: How Many People Use Bluesky? (2025)," August 18, 2025. At public launch in February 2024, acquired approximately 3 million users during invite-only period

[^9]: SociallyIn, "Bluesky Social Statistics 2025: User Growth & Demographics Report," September 16, 2025. 10 million users as of September 2024

[^10]: Social Media Today, "Bluesky Adds Trending Topics, Exceeds 25M Users," January 1, 2025. 13 million users in October 2024

[^11]: Ibid. Reached 20 million users in mid-November 2024

[^12]: Ibid. 25.9 million users as of end of December 2024

[^13]: SociallyIn, op. cit. Surpassed 30 million users in January 2025

[^14]: Backlinko, op. cit. 38.26 million users as of September 2025. However, according to Wikipedia, "Bluesky," October 22, 2025, while registered users are increasing, daily active users in September 2025 were 1.5 million, down 40% from the March 2025 peak of 2.5 million