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Kalshi secures tens of millions in loans from VCs, eyes $50M+ round amid election betting boom, source says

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Kalshi secures tens of millions in loans from VCs, eyes $50M+ round amid election betting boom, source says

Investors are rushing to throw millions at a hot startup called Kalshi as loans or even as unusual we’ll-figure-it-out later cash. Kalshi is an exchange that allows people to bet, as official commodity trading contracts, on the outcomes of cultural events, from election results to how long Taylor Swift’s latest album will top the charts. 

Betting on the outcome of the upcoming U.S. election has spiked demand so high that Kalshi surged to the top spot on Apple’s app store, after years of being unranked among the finance category and to the seventh position overall as of this writing.

Kalshi’s need for cash reserves increased sharply to ensure it can provide instant funding for customers betting on the U.S. election. So, over the last several days, the Sequoia-backed five-year-old startup has received tens of millions from investors in short-term loans, according to a source with knowledge of the situation. Additionally, the company is currently in discussions with new and existing investors about raising a formal equity round of as much as $50 million, though it is also possible the startup could raise more, the person said.  

Investors who provided capital to Kalshi so the company could sustain its growth until election day included VC firm Neo, one of its earliest backers. Neo’s founder, Ali Pavroti, sent Kalshi a total of $12.4 million, comprised of $5.4 million of Neo’s capital and $7 million of Pavroti’s personal funds, according to the now-deleted tweet posted by Kalshi’s co-founder and CEO, Tarek Mansour. While it’s extremely rare for investors to send money (much less millions) without terms locked down and a signed contract, Pavroti’s message to Mansour said, “We can figure out the terms later.”

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Kalshi opened its election market last month after a judge denied the Commodity Futures and Trade Commission’s request to block the trading of elections-linked derivatives. (The CFTC is appealing the court’s ruling.) Since then, the company traded nearly $200 million in contract value for people wanting to bet on the outcome of the political race, Mansour told CNBC on Monday. “The demand curve is truly exponential,” he said.

Kalshi rushed to boost its cash position in anticipation of additional betting on the U.S. election. Like most brokerages, the company offers instant funding to new users. This means users can start trading right away, even though it may take two to three business days for the funds to be officially transferred from the customer’s bank account to Kalshi’s.

Although investors suppose that Kalshi’s growth spike will subside after the election, they believe the company grew so much over the last month that it won’t revert to its prior size, the person said.

Since Kalshi won the ruling against the CFTC, other companies began to offer election contract trading for U.S. citizens. On Monday, Robinhood introduced a market for betting on the presidential election. Interactive Brokers also launched election contracts following Kalshi’s legal victory.

In addition to Sequoia and Neo, Kalshi’s backers include Y Combinator, Henry Kravis, and Mantis VC, a fund managed. The company raised a total of $106 million in equity capital and was last valued at $787 million, according to PitchBook data.

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Microsoft’s Recall AI tool for Copilot+ PCs faces a third delay

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It’s deja vu all over again for Microsoft’s AI-powered Recall tool. After a and then a second one , Microsoft is once more pushing back testing of the feature intended for its Copilot+ PCs. reported that Recall now won’t enter previews for Windows Insiders until December.

“We are committed to delivering a secure and trusted experience with Recall,” Brandon LeBlanc, senior product manager of Windows, told the publication. “To ensure we deliver on these important updates, we’re taking additional time to refine the experience before previewing it with Windows Insiders.”

When it was introduced, Microsoft positioned Recall as a way to give your computer a photographic memory, improving the search process on PCs. But since that photographic memory would demand a high degree of access to a computer’s systems and data, Recall has been the target of privacy and security concerns. Microsoft has tried to those worries by presenting Recall as an opt-in feature, so users will have to give explicit permission for the AI assistant to log their computing activity. The company has also detailed other privacy protections, but today’s third delay could mean that it’s proving more difficult than expected to keep security on lock.

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Google just gave its AI access to Search, hours before OpenAI launched ChatGPT Search

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Google just gave its AI access to Search, hours before OpenAI launched ChatGPT Search

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Google launched real-time search capabilities for its Gemini AI platform on Thursday, enabling its language models to access current information from Google Search. The new feature, called “Grounding with Google Search,” targets developers building AI applications, distinguishing it from OpenAI’s consumer-focused ChatGPT Search service launched the same day.

“We’re focused on putting search-augmented responses into developer workflows,” said Logan Kilpatrick, a product leader at Google, in an exclusive interview with VentureBeat. “We’re leveraging what Google does uniquely well — making the world’s information accessible through search.”

The system allows developers to supplement their AI applications with fresh search data, complete with citations and sources. The service costs $35 per 1,000 queries, reflecting the substantial computing requirements for real-time AI search.

The technology uses a “dynamic retrieval” system that automatically determines when to tap into search results. Each query receives a score between 0 and 1 — questions about current events score high (0.97), while creative writing prompts score low (0.13). This helps manage both costs and response times while maintaining accuracy.

Google’s move to integrate search with its AI platform comes at a critical moment. The company earned $49.4 billion from search advertising in Q3 2024, but faces growing pressure from AI-powered alternatives. Running these systems requires massive computing resources — OpenAI expects to spend $5 billion on computing costs this year alone.

The integration also raises questions about publisher compensation. Both Google and OpenAI have secured licensing deals with major news organizations, though the financial terms remain private. Several publishers, including The New York Times, have filed lawsuits over AI systems using their content without permission.

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Why OpenAI’s new ChatGPT Search could change how we find information online

Hours after Google’s announcement, OpenAI launched ChatGPT Search, taking a different approach by targeting consumers directly. While Google focuses on providing tools for developers to build search-enhanced AI applications, OpenAI’s service offers end users a way to access current information about news, sports, stocks, and weather through a conversational interface – notably without advertisements.

“The journey we’re on is using Google Search in more creative ways, through multiple surfaces,” said Shrestha Basu Mallick, Google’s group product manager for the Gemini API, in an interview with VentureBeat. “You’ll have it through AI Studio, the Gemini APIs, and it may eventually become native in the model itself.”

This new phase of competition could reshape how people find information online. Rather than scrolling through pages of results, users may increasingly rely on AI systems to synthesize answers from multiple sources. However, questions remain about accuracy, publisher compensation, and whether companies can build sustainable business models around these computing-intensive services.

The simultaneous launches suggest AI-powered search may evolve into a three-way race between Google, Microsoft (through its OpenAI partnership), and OpenAI itself.

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Google maintains advantages in search infrastructure and advertising revenue, while OpenAI has demonstrated skill in creating compelling consumer AI products. Microsoft, meanwhile, benefits from both through its multibillion-dollar OpenAI investment.


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NFL quarterback turned-founder Colin Kaepernick on the challenges facing disrupters

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Colin Kaepernick

Former NFL quarterback and civil rights activist Colin Kaepernick took the stage at TechCrunch Disrupt 2024 on Wednesday to talk about the challenges facing people who want to disrupt something — both inside and outside of the tech world.

“One of the biggest challenges that you will likely face when you try to disrupt something — or you try to do something you’re passionate about, and it ends up disrupting something in that process, is you face a lot of resistance,” Kaepernick said. “There will be difficult times, and during those times, you want to have those people that you can lean on, the people that can support you, and that’s really what gives you that endurance.”

Kaepernick is no stranger to disrupting the status quo, as he made national headlines in 2016 when he took a knee to protest racial injustice. The former NFL star says that while he faced a lot of resistance, he also saw a push to create a better and more equitable future.

“When you do that and you see such a strong response to it, it really gives you perspective and insight,” Kaepernick said. “We have such a long way to go. But, the other part that I learned during that time period, there are also a lot of people that want to go that long way with you, and I think that has been the beautiful part coming out of that is while there has been resistance to it, there’s also been a lot of organizing.”

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As someone who has had thousands of stories written about him, he now wants to help creators take control of their narratives with Lumi. The startup is aiming to empower creators by helping them independently create and publish stories and content.

As for founders who are looking to disrupt and explore their passions, Kaepernick offered a few words of advice.

“Do your homework and know why you’re doing what you’re doing,” he said. “And then two, once you know that, go after it passionately and go after it with everything that you have and bring people with you. I would not be sitting here today and none of you would know me at all if there weren’t a whole lot of people that helped me along the way, and that’s everyone from my wife to family and friends to teammates to coaches, some of the investors and advisors that I’ve had along the way. So have those people with you, because that makes us, that makes you sustainable for the long run.”

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ChromeOS gets a big update with Quick Insert, Focus mode, and new AI features

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ChromeOS gets a big update with Quick Insert, Focus mode, and new AI features

Starting today, Google’s ChromeOS 130 update with Quick Insert, Focus Mode, Welcome Recap, and other features is rolling out. Chromebook Plus models with NPU also get exclusive special features in 130, such as the new recorder app with AI, enhanced mic, camera effects, and Gemini AI tools like “help me read” summaries.

There’s a long list of changes in 130, but here are some highlights. Quick Insert is a way to add emoji, GIFs, or links to recently visited sites and access AI features from a menu. On most devices, that means using the launcher or Google button plus f on your keyboard. The Samsung Galaxy Chromebook Plus is the first Chromebook to replace the launcher key with a new button that activates Quick Insert with a single press, but more devices launching next year will have it, too.

Focus Mode lets you activate do not disturb and schedule time to reduce distractions while you work, while Welcome Recap is an opt-in feature that summarizes whatever you were doing last so you can reopen apps and tabs to get back to work quickly.

Welcome Recap.
Image: Google

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NYT Strands today — hints, answers and spangram for Friday, November 1 (game #243)

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NYT Strands homescreen on a mobile phone screen, on a light blue background

Strands is the NYT’s latest word game after the likes of Wordle, Spelling Bee and Connections – and it’s great fun. It can be difficult, though, so read on for my Strands hints.

Want more word-based fun? Then check out my Wordle today, NYT Connections today and Quordle today pages for hints and answers for those games.

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Snapchat most-used app for online grooming, says NSPCC

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Snapchat most-used app for online grooming, says NSPCC
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The messaging app Snapchat is the most widely-used platform for online grooming, according to police figures supplied to the children’s charity the NSPCC.

More than 7,000 Sexual Communication with a Child offences were recorded across the UK in the year to March 2024 – the highest number since the offence was created.

Snapchat made up nearly half of the cases where the platform used for the grooming was recorded by the police.

The NSPCC said it showed society was “still waiting for tech companies to make their platforms safe for children.”

Snapchat told the BBC it had “zero tolerance” of the sexual exploitation of young people, and had extra safety measures in place for teens and their parents.

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Becky Riggs, the National Police Chief’s Council lead for child protection, described the data as “shocking.”

“It is imperative that the responsibility of safeguarding children online is placed with the companies who create spaces for them, and the regulator strengthens rules that social media platforms must follow,” she added.

Groomed at the age of 8

The gender of the victims of grooming offences was not always recorded by police, but of the cases where it was known, four in five victims were girls.

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Nicki – whose real name the BBC is not using – was eight when she was messaged on a gaming app by a groomer who encouraged her to go on to Snapchat for a conversation.

“I don’t need to explain details, but anything that you can imagine happening happened in those conversation – videos, pictures. Requests of certain material from Nicki, etcetera,” her mother, who the BBC is calling Sarah, explained.

She then created a fake Snapchat profile pretending to be her daughter and the man messaged – at which point she contacted the police.

She now checks her daughter’s devices and messages on a weekly basis, despite her daughter objecting.

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“It’s my responsibility as mum to ensure she is safe,” she told the BBC.

She said parents “cannot rely” on apps and games to do that job for them.

‘Problems with the design of Snapchat’

Snapchat is one of the smaller social media platforms in the UK – but is very popular with children and teenagers.

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That is “something that adults are likely to exploit when they’re looking to groom children,” says Rani Govender, child safety online policy manager at the NSPCC.

But Ms Govender says there are also “problems with the design of Snapchat which are also putting children at risk.”

Messages and images on Snapchat disappear after 24 hours – making incriminating behaviour harder to track – and senders also know if the recipient has screengrabbed a message.

Ms Govender says the NSPCC hears directly from children who single out Snapchat as a concern.

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“When they make a report [on Snapchat], this isn’t listened to, and that they’re able to see extreme and violent content on the app as well,” she told the BBC.

A Snapchat spokesperson told the BBC the sexual exploitation of young people was “horrific.”

“If we identify such activity, or it is reported to us, we remove the content, disable the account, take steps to prevent the offender from creating additional accounts, and report them to the authorities,” they added.

Record offending

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The instances of recording grooming has been increasing since the offence of Sexual Communication with a Child came into force in 2017, reaching a new record high of 7,062 this year.

Of the 1,824 cases where the platform was known last year, 48% were recorded on Snapchat.

The number of grooming offences recorded on Snapchat has risen each year since 2018/19.

Reported grooming offences on WhatsApp also rose slightly in the past year. On Instagram and Facebook, known cases have fallen over recent years, according to the figures. All three platforms are owned by Meta.

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WhatsApp told the BBC it has “robust safety measures” in place to protect people on its app.

Jess Phillips, minister for safeguarding and violence against women and girls, said social media companies “have a responsibility to stop this vile abuse from happening on their platforms”.

In a statement, she added: “Under the Online Safety Act they will have to stop this kind of illegal content being shared on their sites, including on private and encrypted messaging services or face significant fines.”

The Online Safety Act includes a legal requirement for tech platforms to keep children safe.

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From December, big tech firms will have to publish their risk assessments on illegal harms on their platforms.

Media regulator Ofcom, which will enforce those rules, said: “Our draft codes of practice include robust measures that will help prevent grooming by making it harder for perpetrators to contact children.

“We’re prepared to use the full extent of our enforcement powers against any companies that come up short when the time comes.”

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