TNB Tech Minute: New York City Launches Prediction Markets Investigation

Summary

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WSJ Tech News Briefing – Tech Minute: NYC Launches Prediction Markets Investigation

Episode Date: August 12, 2026
Host: Danny Lewis

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Overview

In this quick Tech Minute update, host Danny Lewis covers three major tech stories:

• New York City Council’s investigation into several prediction markets
• Record-breaking funding rounds for two innovative startups—a no-code AI platform and a batteries manufacturer
  The episode spotlights regulatory scrutiny in fintech and highlights major investment trends in AI and clean energy tech.

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Key Discussion Points & Insights

1. New York City Council Investigates Prediction Markets

[00:33 – 01:25]

• The NYC Council is probing four prediction market platforms: Polymarket, Kalshi, Coinbase, and Gemini Titan.
• The investigation centers on alleged deceptive marketing and the targeting of minors.
  • The Council's letter requests data on:
    • Company earnings in New York
    • Number of NYC resident users
    • Details of marketing operations
  • Special focus on Polymarket: The Council demands clarification over promotional videos that allegedly show fake trades and encourage insider trading on social media.
• Company responses:
  • Coinbase spokeswoman: "The company fully complies with applicable laws." (00:57)
  • Polymarket and Kalshi: Both "look forward to engaging with the City Council."
  • Gemini Titan: Did not respond to comment requests.
• Context note: Polymarket has a data partnership with Dow Jones, which publishes the Wall Street Journal.

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2. Lovable—Stockholm AI Startup’s Funding Milestone

[01:25 – 01:55]

• Exclusive WSJ scoop: AI startup Lovable has secured a new funding round at a valuation exceeding $13 billion—over double its December 2025 valuation.
• About Lovable:
  • Platform enables users to build software and web apps using "simple everyday language," known as "Vibe coding."
  • New $400 million funding to spur expansion across Europe, the US, and Latin America.
  • Investment will also support new security and reliability features.
• Industry impact: Lovable’s rapid valuation rise cements its status as one of Europe’s premier startups.

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3. Form Energy Raises $750M for Iron Air Batteries

[01:55 – 02:25]

• Another WSJ exclusive: Form Energy raises $750 million to develop and manufacture its Iron Air battery system.
• Technology spotlight:
  • Form’s batteries differ from lithium-ion by utilizing “reversible rusting,” capable of storing power for days instead of just hours.
  • This tech could help utilities handle long-duration grid emergencies, e.g., extended winter storms or sudden surges in energy demand.
• Looking ahead:
  • Funds will be used to scale up manufacturing and launch the company’s first wave of commercial products.

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Notable Quotes & Memorable Moments

• Danny Lewis [00:42]:
  “The New York City Council is investigating four prediction markets...for alleged deceptive marketing practices and targeting minors.”
• Danny Lewis [00:57]:
  “A Coinbase spokeswoman said the company fully complies with applicable laws. Polymarket and Kalshi say they look forward to engaging with the City Council.”
• Danny Lewis [01:29]:
  “Lovable has closed a new funding round, valuing it at more than $13 billion. That’s more than double its previous valuation set in December...”
• Danny Lewis [02:04]:
  “[Form Energy’s battery] can store enough power to last several days through a process it calls reversible rusting. That’s enough to help utilities power through days-long grid emergencies...”

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Timestamps for Key Segments

• 00:33 – 01:25: NYC Council’s investigation into Polymarket, Kalshi, Coinbase, Gemini Titan
• 01:25 – 01:55: Lovable’s $13B valuation and platform details
• 01:55 – 02:25: Form Energy’s batteries and $750M funding

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Summary

This condensed WSJ briefing highlights major intersections of tech, regulation, and finance:

• NYC’s legislative scrutiny on the ethics of prediction markets and their user targeting
• Expansive growth and high-profile funding in AI-driven development tools (Lovable)
• New energy tech breakthroughs poised to reshape the energy storage industry (Form Energy)

For listeners seeking insight into current regulatory shifts and innovation trends, this Tech Minute delivers sharp, actionable updates.

Transcript

[A]

The browser is your business's first line of defense against online threats. Keep your employees and data safe with Chrome Enterprise, the most trusted enterprise browser. Create controls that enforce company policies, like rules that prevent employees from printing, pasting or sharing company data access in depth reports that show the apps and extensions your employees are using and where data is going and coming from and prevent phishing and malware attacks from reaching your employees with automatic proactive protections that Visit Chrome Enterprise, Google to learn more.

[B]

Here's your morning TNB Tech minute for Wednesday, August 12th. I'm Danny Lewis for the Wall Street Journal. The New York City Council is investigating four prediction markets, polymarket, Kalshi, Coinbase and Gemini Titan for alleged deceptive marketing practices and targeting minors. In letters sent to the companies, the City Council speaker asked for information on how much they earn in New York, the number of users who are city residents and and how their marketing operations work. The speaker also asked polymarket for details about promotional videos that appeared to depict fake trades and promoted insider trading on social media. A Coinbase spokeswoman said the company fully complies with applicable laws. Polymarket and Kalshee say they look forward to engaging with the City Council. Gemini Titan didn't respond to a request for comment. Polymarket has a data partnership with Dow Jones, the publisher of the Journal. We exclusively report that AI startup Lovable has closed a new funding round, valuing it at more than $13 billion. That's more than double its previous valuation set in December, making the Stockholm based company one of Europe's most valuable startups. Lovable's platform can be used to create software and web applications using simple everyday language, a process known as Vibe coding. The company and its investors said it will use the $400 million raised to fund its expansion in Europe, the the US and Latin America, as well as adding new security and reliability features. And in another WSJ exclusive, a startup that makes giant Iron Air batteries has raised $750 million in a new funding round. Unlike conventional lithium ion batteries, which can discharge power for a few hours at a time, Form Energy's battery system can store enough power to last several days through a process it calls reversible rusting. That's enough to help utilities power through days long grid emergencies like winter storms and times when electricity demand skyrockets. Form plans to use the new funding to boost manufacturing and for its first wave of commercial products. That's your T and B Tech minute. Join us again this afternoon for more.

[A]

The browser is your business's first line of defense against online threats. Keep your employees and data safe with Chrome Enterprise, the most trusted enterprise browser. Create controls that enforce company policies, like rules that prevent employees from printing, pasting, or sharing company data access in depth reports that show the apps and extensions your employees are using and where data is going and coming from and prevent phishing and malware attacks from reaching your employees with automatic proactive protections. Visit Chrome Enterprise Google to learn more.