Twitter kicked off deal negotiations with Elon Musk on Sunday after he wooed shareholders with details of his $43 billion offer, Reuters reports.

Why it matters: The company's decision to engage with Musk doesn't mean it will accept his $54.20 per share bid. But it shows Twitter is now exploring whether a sale to Musk is possible on attractive terms, Axios' Dan Primack reports.

Musk, CEO of Tesla and SpaceX, has been meeting with Twitter shareholders in the last few days, to seek support for his bid. He's telling them Twitter needs to be taken private to grow and become a genuine platform for free speech.

Musk's insistence that his bid is his "best and final" has emerged as a hurdle in the deal negotiations, sources told Reuters.

• Nevertheless, Twitter's board has decided to engage with Musk to gather more information on his ability to complete the deal, and potentially to get better terms.
• The talks were also reported by the Wall Street Journal and the New York Times, with some reports saying that a sale could be announced as soon as today.

In the short time since Musk’s intention to acquire the company has come to light, he has spoken openly about how he would change the platform to prioritize free speech.

• Many have questioned these prospective plans for lighter content moderation, speculating that they would make the platform even more toxic.
• "RIP Twitter" was trending as the news reports circulated this morning.

Meanwhile, Musk spent this past weekend using his Twitter account to mock Bill Gates, after Musk suspected Gates of taking a short position on Tesla stock.

Software that uses machine learning to attempt to detect human emotions is emerging as the latest flashpoint in the debate over the use of artificial intelligence.

Why it matters: Proponents argue that such programs, when used narrowly, can help teachers, caregivers and even salespeople do their jobs better. Critics say the science is unsound and the use of the technology dangerous.

Driving the news: Though emotion-tracking technology has been evolving for a while, it's rapidly moving into broader use now, propelled in part by the pandemic-era spread of videoconferencing.

• Startups are deploying it to help sales teams assess customers' responses to their pitches, and Zoom could be next, as Protocol reports.
• Intel has been working with Classroom Technology on education software that can give teachers a better sense of when students working online are struggling.

Between the lines: Critics have been sounding alarms over mood-detection tech for some time.

• Spotify faced criticism last year after it had applied for a patent on a technique for determining a person's mood and gender based on their speech.

What they're saying: "Emotion AI is a severely flawed theoretical technology, based in racist pseudoscience, and companies trying to market it for sales, schools, or workplaces should just not," Fight for the Future's Caitlin Seeley George said in a statement to Axios.

• "It relies on the assumption that all people use the same facial expressions, voice patterns, and body language. This assumption ends up discriminating against people of different cultures, different races, and different abilities."

The other side: Those working on the technology say that it's still in its early stages but can be a valuable tool if applied only to very specific cases and sold only to companies who agree to limit its use.

• With sufficient constraints and safeguards, proponents say the technology can help computer systems better respond to humans. It's already working, for example, to help users of automated call systems get transferred to a human operator when the software detects anger or frustration.
• Intel, whose researchers are studying how emotion-detecting algorithms could help teachers better know which students might be struggling, defended its practices and said the technology is "rooted in social science."
• "Our multi-disciplinary research team works with students, teachers, parents and other stakeholders in education to explore how human-AI collaboration in education can help support individual learners' needs, provide more personalized experiences and improve learning outcomes," the company said in a statement to Axios.

European lawmakers came to an agreement early Saturday in Brussels on a legislative package that will impose major new obligations on how Big Tech companies handle content on their platforms — and big fines if they fail to comply, Axios' Ashley Gold reports.

Why it matters: It's another aggressive step forward on tech for Europe, which has led the way in regulating the digital age and has already set standards for how the world deals with online privacy and competition.

Driving the news: EU lawmakers came to a political agreement on the Digital Services Act (DSA) after hours of deliberation, hammering out final details of the proposal.

• Per an announcement from the European Council, the DSA follows the principle that what is considered illegal speech in Europe should also be considered illegal speech online, and it places new obligations on all online content hosts providing service in Europe.
• New rules will aim to stem the flow of misinformation, require transparency, and limit some kinds of targeted ads.

What they're saying: "It's not a slogan anymore, that what is illegal offline, should also be seen and dealt with as illegal online. Now it is a real thing," Margrethe Vestager, executive vice-president of the European Commission and head of competition, said on Twitter.

• The DSA is "helping us to get our rights and to feel safe when we're online," she said.

The big picture: The DSA follows Europe coming to a political agreement on the Digital Markets Act, a major competition package, last month.

What's next: The agreement will have to pass the European Council and Parliament, which is nearly guaranteed to happen.

Read the full story.

On Tap

• Kent Walker, Google's president for global affairs and chief legal officer, will discuss the company's perspective on a U.S. privacy law in a speech and fireside chat with Margaret Harding McGill at an R Street Institute event at noon ET today.
• Tons of tech companies, including the biggest, report earnings this week, with Microsoft and Google on Tuesday; Facebook, Qualcomm, Spotify and PayPal on Wednesday; followed by Amazon, Apple, Intel and Twitter on Thursday.

ICYMI

• Apple has reportedly started deleting older apps that haven't been updated recently. (The Verge)

This one goes out to both fans of Batman jokes as well as those who appreciate signal vs. noise humor.