Michael Burry, the investor known for predicting the 2008 subprime mortgage crisis, criticized prediction markets on May 13, calling platforms like Kalshi 'gambling' that exploit regulatory loopholes. Burry argued that while the gambling industry faces high taxes and strict regulation in the US, prediction markets operate in a regulatory vacuum while conducting essentially identical activities. The criticism followed a Roosevelt Institute report revealing that since 2018, retail users have lost approximately $600 million on Kalshi, while a small group of professional traders profited from structural advantages. Burry questioned the feasibility of detecting insider trading on these platforms, disagreeing with Kalshi CEO Tarek Mansour's claim that prediction markets make such detection easier than stock markets. The debate intensifies as prediction market growth accelerates, with critics arguing these platforms exploit fundamental human weaknesses without adequate safeguards against fraud.
Burry stated on X (formerly Twitter) that 'Kalshi and all prediction markets operate by exploiting regulatory loopholes' and 'no matter what name anyone gives it, it's ultimately gambling.' He emphasized that the gambling industry faces high taxes and strong regulations in the US, while prediction markets conduct essentially the same activities by leveraging regulatory gaps. Burry added that 'Kalshi provides an environment where people can both gamble and cheat,' and 'thanks to regulatory loopholes, this is possible across the US.' He further noted that 'prediction markets grow rapidly because they directly stimulate humanity's most primal weaknesses,' and 'as long as society allows this, the trend will continue.' Burry concluded that 'there are virtually no mechanisms to prevent fraud in prediction markets,' stating 'cheating is as old as gambling, and it has the power to drive humans to extreme behavior.'
California Governor Signs EV Incentive Bill Favoring Rivian and Lucid
California Governor Gavin Newsom signed legislation on May 13 providing $3,500 rebates for new electric vehicle purchases and $1,750 for used EV purchases to first-time buyers. The program will begin this summer, though the exact implementation date has not been announced. California stated it will announce participating automakers next month. The bill introduced price caps as eligibility requirements: new vehicles cannot exceed $50,000 manufacturer's suggested retail price, and used vehicles cannot exceed $25,000. However, the bill exempts EV manufacturers headquartered in California that produce only zero-emission vehicles. This allows Rivian and Lucid, headquartered in Irvine and Newark respectively, to participate in the incentive program regardless of vehicle price. Tesla is excluded from this exemption, having relocated its headquarters from California to Austin in 2021. Business Insider reported that 'California confirmed Lucid and Rivian may qualify for exemptions, but Tesla will be subject to price caps,' evaluating that 'this bill will work favorably for Lucid and Rivian.'
Ultra-Wealthy Americans Seek Foreign Citizenship Amid Wealth Tax Concerns
Ultra-high-net-worth individuals in the US are increasingly securing foreign citizenship or residency as wealth tax discussions expand, even without actual plans to relocate abroad. California faces a November ballot measure to impose a 5% one-time wealth tax on approximately 200 billionaires. Google co-founders Sergey Brin and Larry Page reportedly moved assets out of California, while other wealthy individuals relocated to states like Florida with no income tax. Henley & Partners, which assists with foreign citizenship and residency acquisition, reported a 183% increase in inquiries from Americans comparing Q1 2024 to Q1 2025. David Lesperance, an attorney specializing in ultra-wealthy tax and nationality matters, explained that clients first examine 'citizenship by descent' based on parents' or grandparents' nationality. Approximately 50 countries including Greece, Poland, Italy, and Germany operate citizenship-by-descent programs, with EU member state citizenship offering the advantage of residency rights across 27 member states. Some ultra-wealthy individuals utilize 'golden passport' programs that grant citizenship in exchange for specific investment amounts. Investment requirements range from hundreds of thousands to millions of dollars depending on the country, with 'golden visa' programs offering residency also spreading. Dominic Jones, CEO of New Zealand immigration consultancy Greener Pastures New Zealand, stated that over 120,000 investment citizenship and investment visas are issued globally each year, with the scale continuing to increase. New Zealand's golden visa requires approximately $3 million investment, while some Caribbean nations like Saint Kitts and Nevis offer citizenship for investments as low as $250,000. New Zealand experienced significantly increased applications from Americans after easing golden visa requirements last year.
OpenAI Employees Publicly Defend Sam Altman's Leadership Style
Current and former OpenAI employees publicly defended CEO Sam Altman after internal criticism emerged that he does not accept critical opinions. Eric Mitchell, OpenAI Post-Training Frontier Co-Lead, wrote on X (formerly Twitter) that 'I have directly raised disagreements with Altman multiple times, corrected his judgment, and communicated dissatisfaction with leadership,' adding 'each time, Altman listened with curiosity and an open attitude, and sometimes showed respect for my opinion.' This followed claims that a culture exists where criticizing management results in disadvantages. AI Product Lead Nick Hoover raised questions about company culture, stating that during the OpenAI interview process, an interviewer presented a task to 'verify Altman's beliefs with data.' He subsequently deleted the post. OpenAI's organizational culture has received consistent attention since Altman's abrupt dismissal and reinstatement in 2023. The board stated at the time that Altman was not consistently candid in communications with the board, though Altman recently claimed in court to be 'an honest and trustworthy businessman.' Former OpenAI employees also made statements supporting Altman. Gabriel Peterson, who participated in developing AI video model 'Sora,' evaluated that 'Altman is truly someone who accepts feedback well.' Will Depue, who left the company in April, stated 'OpenAI is an organization that accepts internal disagreements and criticism exceptionally well, for better or worse.'
Analysts Advise Electronics Purchases Before AI-Driven Price Increases
Consumers planning to purchase new electronics amid the AI boom should prepare to bear higher costs, with analysts advising that buying before additional price increases may be preferable. Mike Howard, Vice President at market research firm TechInsights, made this claim, explaining that even if memory component prices decline, the effect will likely take at least one year to reflect in consumer prices. However, judgment may vary depending on the product, as many technology companies tend to unveil new products in fall ahead of the year-end shopping season, making it undesirable to pay higher prices for older models before new model announcements. Apple has not yet raised iPhone prices, but Howard believes Apple may need to increase smartphone prices by approximately $250-$300 to maintain current profitability. He stated 'it's time to think about $1,500 iPhones, not $1,000 or $1,200 iPhones.' Refurbished or used products also represent alternatives. Major retailers and manufacturers including Amazon, Apple, and Samsung operate certified renewed or refurbished programs, inspecting and testing used products before selling at discounted prices. Relatively recently released products can often be found sufficiently in refurbished programs because retailers and carriers encourage returning existing devices when purchasing new products. Gadjo Sevilla, analyst at market research firm eMarketer, explained 'most are virtually new products returned after purchase,' adding 'refurbished device performance often shows little difference from new products.' Caution is necessary when purchasing excessively old-generation used devices, as consumers may need to replace devices again soon. Consumers can also consider adding cloud storage space or replacing batteries instead of purchasing new devices. Regarding when the memory shortage will resolve, Howard stated 'building and operating new semiconductor factories is not simple,' adding 'now everyone understands that fact. It is the most complex manufacturing process on Earth.'
FAQ
What did Michael Burry say about prediction markets on May 13?
Michael Burry stated on May 13 that prediction markets like Kalshi are 'gambling' that exploit regulatory loopholes. He argued that while the US gambling industry faces high taxes and strict regulation, prediction markets conduct essentially identical activities by leveraging regulatory gaps. Burry emphasized that these platforms provide environments where people can both gamble and cheat, with virtually no mechanisms to prevent fraud.
How does California's new EV incentive bill favor Rivian and Lucid?
California Governor Gavin Newsom signed legislation on May 13 providing EV purchase rebates with price caps of $50,000 for new vehicles and $25,000 for used vehicles. However, the bill exempts EV manufacturers headquartered in California that produce only zero-emission vehicles. This allows Rivian (headquartered in Irvine) and Lucid (headquartered in Newark) to participate regardless of vehicle price, while Tesla is excluded from the exemption after relocating its headquarters to Austin in 2021.
Why are ultra-wealthy Americans seeking foreign citizenship?
Ultra-high-net-worth Americans are increasingly securing foreign citizenship or residency as wealth tax discussions expand, particularly with California's November ballot measure proposing a 5% wealth tax on approximately 200 billionaires. Henley & Partners reported a 183% increase in citizenship inquiries from Americans comparing Q1 2024 to Q1 2025. Many pursue citizenship-by-descent through ancestral connections or utilize 'golden passport' investment programs, even without actual relocation plans, as preparation for potential future tax burdens or political uncertainty.
