Daily Edition · Page 2

THE DAILY INDEX

Technology, AI, software, security, crypto and business

GENERAL

TLDR

PREDICTING OUR OWN DEMISE

Prediction markets don't provide better predictions about the future. The best, most efficient financial markets have standardized products, many participants, low transaction costs, and heterogeneous participants. Prediction markets lack participants with heterogeneous risk preferences. It's also possible for participants to manipulate some outcomes. Prediction markets are bad market design, and they induce bad incentives, so we should put the genie back in the box while there's still time.

INSIDE INTEL'S TRICKY DANCE WITH TRUMP

President Donald Trump told Lip-Bu Tan, Intel's chief executive, to step down five months into his tenure because of his past ties to the Chinese military. Tan eventually smoothed things over with Trump, but at a cost: in return for his support, the administration converted nearly $9 billion in grants promised to Intel as part of the 2022 Chips Act into a 10% equity stake in the company. The US government is now Intel's biggest shareholder. Tan still needs to resolve core business challenges to get Intel back on track. Without new commitments from customers, converting government grants to stock will only leave the company in a worse financial shape by diluting shareholders.

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