Michael Burry, the investor famous for predicting the subprime mortgage crisis featured in 'The Big Short,' criticized prediction markets as gambling operations exploiting regulatory loopholes on May 13 (local time). Burry stated via X (formerly Twitter) that platforms like Kalshi operate as gambling despite different labeling, while traditional gambling faces high taxes and strict regulation. The criticism follows a Roosevelt Institute report revealing general users lost approximately $600 million on Kalshi since 2018, while professional traders profited from structural advantages.
Burry Labels Kalshi and Prediction Markets as Unregulated Gambling
According to Business Insider, Burry wrote on X that "all prediction markets including Kalshi operate by exploiting regulatory loopholes" and "no matter what name anyone attaches, it's ultimately gambling." He pointed out that while the gambling industry in the US faces high taxes and strong regulation, prediction markets conduct essentially the same activities by exploiting regulatory gaps.
Burry raised questions about insider trading possibilities. Kalshi CEO Tarek Mansour previously claimed prediction markets make insider trading easier to detect than stock markets, but Burry disagreed. He stated "Kalshi provides an environment where people can both gamble and use deceptive practices" and "regulatory loopholes make this possible across the United States."
Burry added that "prediction markets grow rapidly because they directly stimulate humanity's most primitive weaknesses" and "as long as society allows this, the trend will continue." He concluded that "there are virtually no mechanisms to prevent fraud in prediction markets" and "deception is as old as gambling itself, possessing the power to drive humans to extreme behavior."
California Governor Signs EV Incentive Law Exempting Rivian and Lucid
California Governor Gavin Newsom signed legislation on May 13 (local time) providing $3,500 rebates for first-time electric vehicle buyers purchasing new vehicles and $1,750 for used vehicle purchases. The program will begin this summer, though the exact implementation date was not announced. California stated it will announce participating automakers next month.
The legislation introduced price caps as eligibility requirements. New vehicles cannot exceed $50,000 manufacturer's suggested retail price, while used vehicles cannot exceed $25,000. However, the law 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. Tesla relocated its headquarters from California to Austin in 2021. Business Insider reported that "California confirmed Lucid and Rivian can qualify for exemptions, but Tesla will be subject to price caps" and "this legislation will work favorably for Lucid and Rivian."
Ultra-Wealthy Americans Pursue Second Citizenships Amid Wealth Tax Concerns
As wealth tax discussions targeting ultra-high-net-worth individuals expand in the US, movements among the ultra-wealthy to secure overseas citizenship or residency are increasing. According to Business Insider on May 13 (local time), ultra-wealthy individuals are securing second and third citizenships to prepare for future tax burdens or political uncertainty, even without actual overseas relocation plans.
California faces a November ballot measure to impose a one-time 5% wealth tax on approximately 200 billionaires. Google co-founders Sergey Brin and Larry Page reportedly transferred assets outside California, while other wealthy individuals moved residences to Florida and other states without income tax.
Henley & Partners, which assists with overseas citizenship and residency acquisition, reported that inquiries from Americans increased 183% in Q1 2025 compared to Q1 2024. 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 acquisition systems based on ancestry. Acquiring EU member state citizenship offers the advantage of residing in 27 member countries. Some ultra-wealthy individuals use "golden passport" programs that grant citizenship for specific investment amounts.
Investment amounts vary from hundreds of thousands to millions of dollars depending on the country, with "golden visas" granting residency also spreading. Dominic Jones, CEO of Greener Pastures New Zealand, stated that over 120,000 investment citizenships and investment visas are issued globally annually, with numbers continuing to increase.
New Zealand's golden visa requires approximately $3 million investment, while some Caribbean nations like Saint Kitts and Nevis allow citizenship acquisition with investments up to $250,000. New Zealand saw a significant increase in American applications after relaxing golden visa requirements last year.
OpenAI Employees Publicly Defend 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. According to Business Insider on May 13 (local time), 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 conveyed dissatisfaction with leadership" and "each time, Altman listened with curiosity and an open attitude, sometimes showing respect for my opinions."
This followed claims of a culture where criticizing management results in disadvantages. AI product lead Nick Huber questioned company culture after an interviewer in the OpenAI interview process presented a task to "verify with data a belief held by Altman." He later deleted the post.
OpenAI's organizational culture has received continuous attention since Altman's sudden dismissal and reinstatement in 2023. The board stated at that time that Altman was not consistently candid in communications with the board, but Altman recently claimed in court to be "an honest and trustworthy businessman."
Former OpenAI employees also made statements defending Altman. Gabriel Peterson, who participated in developing AI video model "Sora," evaluated that "Altman really accepts feedback well." Will Depue, who left the company in April, stated "OpenAI is an organization that exceptionally accepts internal disagreement and criticism, for better or worse."
Analysts Recommend Electronics Purchases Before AI-Driven Price Increases
Analysts advise that consumers planning to purchase new electronic devices amid the AI boom should prepare to bear more costs, suggesting purchases before additional price increases may be preferable. According to CNN on May 13 (local time), Mike Howard, vice president at TechInsights, explained 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 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 are also cited as 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. 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 eMarketer, explained that "most are essentially new products close to new condition returned after purchase" and "refurbished device performance often shows little difference from new products." Caution is needed when purchasing used devices from excessively old generations, as replacement may be needed again soon.
Consumers can also consider using additional cloud storage space or replacing batteries instead of purchasing new devices. Regarding when the memory shortage will resolve, Howard stated "the process of building and operating new semiconductor factories is not simple" and "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 via X (formerly Twitter) on May 13 (local time) that all prediction markets including Kalshi operate by exploiting regulatory loopholes and constitute gambling regardless of labeling. He criticized that while traditional gambling faces high taxes and strong regulation, prediction markets conduct essentially the same activities through regulatory gaps.
How does California's new EV incentive law favor Rivian and Lucid?
California Governor Newsom signed legislation on May 13 (local time) providing EV purchase rebates with price caps of $50,000 for new vehicles and $25,000 for used vehicles. However, the law exempts EV manufacturers headquartered in California that produce only zero-emission vehicles, allowing Rivian (Irvine) and Lucid (Newark) to participate regardless of vehicle price, while Tesla is excluded after relocating to Austin in 2021.
Why are ultra-wealthy Americans seeking second citizenships?
According to Business Insider, ultra-wealthy Americans are securing overseas citizenship or residency to prepare for future tax burdens or political uncertainty. Henley & Partners reported inquiries from Americans increased 183% in Q1 2025 compared to Q1 2024. California faces a November ballot measure to impose a 5% wealth tax on approximately 200 billionaires, prompting wealthy individuals to explore citizenship by descent, golden passports, and golden visas.
