Delving deeper into the Delve drama

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• Delve accused of faking compliance checks: The YC-backed startup, from MIT drop-outs Karun Kaushik and Selin Kocalar, uses AI agents to automate the arduous regulatory compliance process that proves a time-consuming bottleneck for so many small or early-stage companies. They raised a $32 million seed round in July 2025 at a $300 million valuation to pursue the project. But a widely-shared new Substack post alleges that the startup is generating fake evidence of compliance on its clients’ behalf, skipping major requirements, using off-shore “certification mills” to produce generic nearly-identical reports, and filling out audit paperwork before any actual audit has taken place. If true, Delve wouldn’t just be cheating their clients out of money, but potentially putting them in legal jeopardy, exposing them to liability under laws like HIPAA and the EU’s General Data Protection Regulation (GDPR).

• White House unveils AI policy framework: The Trump Administration, eager to get ahead of state-wide attempts to govern and regulate AI development, released its own “light-touch framework” for a national AI policy. The non-binding memo recommends that Congress overrule state laws that place “undue burdens” on AI innovation, including statutes that regulate how AI models are trained and developed, or rules penalizing companies for the way that users employ their models. It also suggests that lawmakers hold off on creating new federal agencies dedicated to overseeing or regulating AI development. The President has suggested that states which pass laws deemed by the federal government to be too “onerous” on tech companies could be subjected to restrictions on federal funding for internet availability and broadband expansion.

• Some Kalshi markets banned in Nevada: The prediction market received a 14-day restraining order from the First Judicial District Court of Nevada, ordering them to immediately cease any markets based on sports, entertainment events, or upcoming elections. Though the Arizona Attorney General has filed actual criminal charges against Kalshi, and there are dozens of other similar cases popping up nationwide, this marks the first time a US court has actually forced them to cease operations. Nevada argues that Kalshi is running a gambling operation without a license; the company claims that prediction markets are a separate business model, falling under federal jurisdiction. After 14 days, the court will assess whether or not to extend the ban to the conclusion of the AG’s legal action.

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The debate over protecting copyright in the era of AI has been raging for years, and comes up frequently on the pod. AI model makers argue that it’s impossible to violate copyright while training models, and that the process is most comparable to a human reading a book and absorbing its contents and information into their brain. Publishers, media brands, and authors argue that the AI models are merely remixing and repurposing original work, and that they should be compensated even if the outputs are not entirely similar.

On some level, it has always felt like a bit of a binary impasse. Either AI outputs are copyright violation and plagiarism, and creators whose work helped to train them deserve compensation, or they’re something entirely new and no one is owed a thing.

In a new op-ed in the Financial Times, Mistral AI CEO Arthur Mensch proposes something of a middle ground compromise. What if major AI companies like OpenAI, Anthropic, and presumably Mistral paid a “levy” for selling their models and products, and these funds were then directed into the “cultural sector,” compensating artists and creators who work made the models possible? Could this be a way to both put an stop to the seemingly-endless legal wrangling between content producers and AI innovators, while also giving a much-needed boost to many of the very creative industries most threatened by AI advancements?

Mensch’s proposal is aimed specifically at Europe, where he argues a “fragmented legal environment” has stymied efforts to keep up with technological advances being made in the US, China, and elsewhere. But if it actually worked in practice, this might be a new way of approaching the debate from a global perspective. – Lon

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E2265: This episode was recorded in front of a live audience at LaunchFest in San Francisco! Jason sits down with Robinhood co-founder, Chairman, and CEO Vlad Tenev. Together they reminisce about their first meeting — when Vlad pitched Jason on Robinhood in a dive bar — plus thoughts on the importance of doing multiple launches for a new product, how Robinhood identified its ideal customers, tips for navigating negative press and mistakes that feel existential, plus Vlad’s thoughts on working with AI and nurturing talent internally.

E2264: Today’s show was recorded LIVE at LaunchFest in San Francisco, California, and features JCal in conversation with Robinhood co-founder and CEO Vlad Tenev. On the docket: Jason and Vlad’s origin story, the importance of launching your product multiple times, what to do when your mistakes feel “existential,” leaning into negative press, facing down competition in the AI era, how Robinhood nurtures and develops talent, and much much more.

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