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Kalshi’s legal troubles pile up, as Arizona files first ever criminal charges over ‘illegal gambling business’

Arizona attorney general Kris Mayes has filed criminal charges against prediction market platform Kalshi for allegedly operating an illegal gambling business in the state without a license and for election wagering.

The 20-count complaint, filed in Maricopa County court on Tuesday, accuses the company of engaging in unlicensed gambling activities, claiming that the site “accepted bets from Arizona residents on a wide range of events,” including state elections, a practice that is illegal in Arizona. The complaint charged Kalshi with four counts of election wagering for accepting bets from Arizona residents on the 2028 presidential race, the 2026 Arizona gubernatorial race, the 2026 Arizona Republican gubernatorial primary, and the 2026 Arizona secretary of state race.

This is the first time a state has pursued such charges against the company, according to the AZ Mirror, and marks a significant escalation in the battle between states and the prediction market industry.

“Kalshi may brand itself as a ‘prediction market,’ but what it’s actually doing is running an illegal gambling operation and taking bets on Arizona elections, both of which violate Arizona law,” Attorney General Mayes said in a statement. “No company gets to decide for itself which laws to follow.”

It’s worth noting that the charges are technically misdemeanors. They follow a small surge of cease-and-desist letters, lawsuits, and other official actions from states over Kalshi’s activities, in which numerous officials have complained that the company is skirting state gambling laws.

Conversely, prediction sites like Kalshi have argued that they are not in violation of state law because they are subject to federal regulation via the Commodity Futures Trading Commission.

Kalshi may be getting attacked left, right, and center, but the company has also taken its own, often preemptive, legal action.

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Kalshi sued Arizona’s Department of Gaming in federal court on March 12. The company’s lawsuit argued that Arizona’s regulatory attempts were intruding “into the federal government’s exclusive authority to regulate derivatives trading on exchanges.” Kalshi also recently sued Iowa and Utah on similar grounds.

Mayes’ office argues the company is merely trying to avoid accountability.

“Kalshi is making a habit of suing states rather than following their laws. In the last three weeks alone, the company has filed lawsuits against Iowa and Utah, and now Arizona,” Mayes said in a statement. “Rather than work within the legal frameworks that states like Arizona have established, Kalshi is running to federal court to try to avoid accountability.”

Elisabeth Diana, Kalshi’s head of communications, called the Arizona criminal charges “seriously flawed” and a matter of “gamesmanship” related to the company’s own litigation against the state.

“Four days after Kalshi filed suit in federal court, these charges were filed to circumvent federal court and short-circuit the normal judicial process,” Diana said. “They attempt to prevent federal courts from evaluating the case based on the merits — whether Kalshi is subject to exclusive federal jurisdiction. These charges are meritless, and we look forward to fighting them in court.”

Federal officials have signaled that they’re on the prediction industry’s side, setting up a potential regulatory showdown between states and the federal bureaucracy. Michael Selig, chair of the Commodity Futures Trading Commission, recently published an op-ed in the Wall Street Journal in which he accused state governments of having “waged legal attacks on the CFTC’s authority to regulate” such sites. Selig also claimed that his agency would no longer “sit idly by while overzealous state governments” undermined the agency’s “exclusive jurisdiction” over the industry.

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Gamma adds AI image-generation tools in bid to take on Canva and Adobe

Gamma, a platform that lets you use AI to create presentations and websites, is launching a new image-generation product for making marketing assets as it seeks to better compete with the likes of Canva and Adobe.

The company says its new product, called Gamma Imagine, will let users employ text prompts to create brand-specific assets like interactive charts and visualizations, marketing collateral, social graphics, and infographics. Gamma currently provides more than 100 templates, which you can use alongside its AI tools to build the kind of assets that you need.

To power its data-driven asset-generation features, the company is integrating with tools like ChatGPT, Claude, Make, Zapier, Atlassian, n8n, and Superhuman Go.

“As we started working with a lot of our early users, we realized that in the presentations they want to create, there was a variety of graphical design use cases that they all also had,” Grant Lee, Gamma’s CEO and co-founder, told TechCrunch. “So we worked alongside them to develop basically a new set of tools that allows them to go far beyond just the traditional presentation format,” he said.

Lee believes Gamma sits well between tools for professionals like Adobe or Figma, and legacy tools like Microsoft PowerPoint.

“We think we can serve the very long tail of knowledge workers and business professionals whose demand for their job is to communicate visually, but they just don’t have the tools. They need to pull in a design resource to be able to help with this stuff, and we want to make an-AI native approach that serves their needs in the sort of middle that we feel is really underserved,” he said.

Last November, Gamma raised $68 million in a Series B round led by a16z, at a $2.1 billion valuation. At that time, the company said it had ARR of $100 million and 70 million users. The company told TechCrunch that it is approaching 100 million users now.

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Google’s data center power playbook comes into focus

Google may have signed on to President Trump’s toothless power pledge, but it’s clear the company started working months ago on a framework to power its data centers.

On Thursday, Google said it will work with Michigan utility DTE to add 2.7 gigawatts of “new resources” in suburban Detroit to power a new data center in the region. Some specifics are still fuzzy at this point, but the deal mimics one signed last month with Xcel Energy to build a data center in Minnesota. This is how Google will develop new capacity for its future data centers.

The new plan includes 1.6 gigawatts of solar power, 400 megawatts of four-hour energy storage, 50 megawatts of long-duration energy storage, and 300 megawatts of “additional clean resources,” which is a squishy way of saying anything from wind and hydro to nuclear and geothermal. 

TechCrunch sent Google’s PR people a number of questions, and while they responded with some details, it’s clear there’s a lot to the proposal that either isn’t fleshed out or isn’t fully public yet. To wit: Does “clean resources” include natural gas? We haven’t received a reply on that one yet.

The remaining 350 megawatts of the 2.7 GW deal will be covered by demand response, which is when large electricity users curtail their use for brief periods of time. What shape that takes remains to be seen. Google may be looking for companies that are willing to dial back their electricity needs at certain times, or it will turn off its own data centers when the grid is strained.

The DTE deal will also use Google’s Clean Transition Tariff, which it has been refining over the past year or so. The tariff was previously used in Google’s deal with Xcel Energy. It’s intended to allow Google to pay a premium to specify the types of power it wants deployed while also encouraging utilities to incorporate such technologies into their long-range planning. Previous instruments like power purchase agreements were often treated by utilities as one-offs.

Google also said it is introducing a $10 million Energy Impact Fund intended to reduce utility bills, including by insulating homes. It sounds a lot like energy efficiency programs run by utilities, just with Google’s name on it. Whether $10 million is enough to assuage regular people’s concerns about rising electricity prices remains to be seen.

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This is the second “bring your own power” package that Google has touted, though it’s unlikely to be its last. In many ways, it’s not that different from the way the company has operated in the past. Sure, the tariff is relatively new, but Google has been investing in or developing new generating capacity ever since it vowed seven years ago to use 100% carbon free power.

The difference is that those projects tended to be announced on their own timelines. Now, we’re seeing the inverse — power projects that are in the works get announced along with the new data center. Smart marketing or something more? We’ll know in a few years.

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BuzzFeed debuts AI slop apps in bid for new revenue

BuzzFeed, the U.S.-based media company known best for its quizzes, listicles, and, for a time, a Pulitzer Prize-winning journalism division, is reinventing itself for the AI era. At least, that’s the pitch.

At the SXSW conference in Austin, BuzzFeed co-founder and CEO Jonah Peretti introduced the company’s next media foray: a spin-off called Branch Office, which will explore artificial intelligence in consumer-facing apps designed for creativity and connection.

The new company is an extension of the experiments BuzzFeed has run for years using AI technology, Peretti explained, in a halting presentation that began with slideshow glitches, before moving on to app demos met with silence or a polite tittering.

“We’ve been working on this secretly for over a year, and we’ve learned a lot from the BuzzFeed platform about what is coming with new kinds of AI formats,” Peretti said. “Using AI is the way of connecting people, building community around these pillars of culture, and taste, and community.”

Bill Shouldis, a director of product at BuzzFeed and the founder of Branch Office, presented two of the company’s new apps: BF Island and Conjure.

The first product, BF Island, is a group chat platform offering features for changing and editing photos using AI. This is not exactly groundbreaking tech in and of itself, but that’s not the point.

Image Credits:SXSW (opens in a new window)

The key feature here is not the AI toolset but the in-app library of online trends and memes, created by an editorial team, which could inspire users to create AI photos referencing blink-and-you-miss-it trends like the McDonald’s CEO taste-testing a burger or the “frame-mogging” drama. (If you don’t know what these are, you’re probably not the “very online” audience that’s being targeted.)

Image Credits:SXSW (opens in a new window)

The other app, Conjure, is similar to BeReal — the once-a-day temporary photo app — except that it instead appears to guide users to take daily photos of things besides themselves. (As a reminder, BeReal didn’t stick, ultimately exiting to Voodoo after losing traction.) In the demo, for instance, the photo prompt was “What lies between the trees and the moon?,” leading the users to snap a photo of the night sky. A series of spooky images flashed on the screen, followed by a whispered, “What will you conjure?”

Image Credits:SXSW (opens in a new window)

We don’t get it, and clearly the audience didn’t either. After the demo, a lone cough could be heard among the silence, followed by uncomfortable laughter.

Shouldis then noted that AI is involved in Conjure, too, as the app has an “AI spirit for a CEO.” (Again, what?)

Peretti also introduced Quiz Party, a social app that lets you take BuzzFeed quizzes with friends and share your results.

BuzzFeed’s underwhelming presentation comes only days after the media company shared that it has “substantial doubt” about its ability to continue as a business and was engaging in strategic conversations focused on fixing its liquidity challenges. The company, which had a net loss of $57.3 million last year, said it would focus this year on its Studio IP and new AI apps, like these.

But even the tech-forward audience at SXSW was not convinced.

As one person pointed out during the Q&A session after the presentation, BeReal had struggled to get people to come back after the novelty wore off. What would an app like Conjure do to combat the same sort of retention problem?

Shouldis said that the app would evolve “and have different types of things happening and not just be exactly what it is today.” He referenced the potential to integrate things like video, audio, and prototyping with Claude Code to build community.

The premise behind the new apps is not unreasonable: AI can lead to faster software development, which makes it possible for companies to more quickly iterate and keep people engaged.

“In a way, software is the new content,” Peretti noted.

Of course, before you can iterate, you have to attract users. With its new apps, BuzzFeed seems to have thought more about what AI can do than what people want to do with AI, which is not a recipe for success.

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