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Cash App Owner Fined $40M For Compliance Gaps

Trump repeals DeFi tax rule, OpenAI readies GPT-4.1, and LiveKit powers ChatGPT voice.

Welcome back to your daily dossier talking AI, robotics, crypto, and the future of tech. 👾

In today’s edition we are tackling the following:

🧾 Block pays $40M for failing to flag suspicious activity on Cash App and Square.
🤖 GPT-4.1 incoming with advanced multimodal capabilities and new reasoning models.
🎤 LiveKit enables real-time voice in ChatGPT and other emergency use cases.
🪙 Trump repeals IRS rule targeting DeFi platforms, hailed as crypto innovation win.
🍒 Bitcoin dips as investors lock in gains from post-tariff rally.

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AI

  • OpenAI Prepares to Launch GPT-4.1 and New Reasoning Models

    • GPT-4.1 will process text, images, and audio, marking OpenAI’s most advanced multimodal release to date.

    • OpenAI also plans to release smaller models and new o3/o4 reasoning models optimized for agentic tasks.

    • Sam Altman warned infrastructure strain might delay full rollout, despite strong user demand for these features.

  • Microsoft Study Reveals AI Models Struggle With Software Debugging

    • Microsoft’s study found top models fail complex debugging tasks, solving fewer than half of benchmarked issues.

    • Even advanced tools like o3-mini perform poorly at sequential reasoning and applying fixes in real code.

    • Researchers suggest training on human debugging traces could improve performance in real-world programming environments.

  • LiveKit Powers Real-Time Communications for Major Tech Companies

    • LiveKit enables real-time voice and video used in ChatGPT Voice Mode and emergency communication systems.

    • The open-source platform supports secure, scalable audio infrastructure for AI agents and developer teams globally.

    • Backed by $45 million in funding, LiveKit plans to expand capacity and open additional voice features.

ROBOTICS

  • Insect-Sized Jumping Robot Navigates Challenging Terrains With Heavy Payloads

    • MIT engineers created a tiny hopping robot that carries payloads 10x its weight while conserving energy.

    • Its leg-powered jump system and flapping wings outperform flying bots in efficiency across uneven terrain.

    • Ideal for search-and-rescue, it navigates small, cluttered environments inaccessible to traditional robots.

  • Chef Robotics Thrives By Pivoting From Original Customer Base

    • Chef Robotics abandoned fast-casual restaurants to serve food manufacturers like Amy’s Kitchen and private-label brands.

    • The pivot led to a $23M raise and robots now helping produce over 45 million meals.

    • Focused on consistency and volume, the company now runs operations in over a dozen U.S. sites.

  • Measuring Tape-Inspired Robotic Gripper Enhances Fruit And Vegetable Harvesting

    • UC San Diego developed a soft robotic gripper using tape mechanisms to gently size and pick produce.

    • Its design avoids damaging fragile items, adapting to various shapes without complex programming or expensive materials.

    • Safe near humans and low cost, it’s poised to support farming and warehouse automation at scale.

CRYPTO

  • Block Inc. Pays $40 Million Fine Over Compliance Failures

    • Block will pay $40 million after failing to report suspicious activity across Cash App and Square platforms.

    • New York regulators cited weak compliance systems and delayed responses to money laundering risks over multiple years.

    • The company agreed to appoint an independent monitor to oversee and improve its internal controls going forward.

  • Cryptocurrencies Decline as Investors Reassess Post-Tariff Pause Gains

    • Bitcoin and Ethereum dipped as traders locked in profits from last week’s rally triggered by the tariff pause.

    • Analysts say crypto markets remain sensitive to macroeconomic swings and changing signals from central banks.

    • The pullback follows a brief run-up driven by optimism around reduced global trade tensions.

  • Trump Repeals IRS Rule Targeting DeFi Platforms

    • Trump signed a resolution canceling an IRS rule that treated DeFi platforms as reportable financial brokers.

    • The rule sparked a backlash over privacy risks and technical impracticalities for decentralized finance platforms and users.

    • Crypto advocates praised the repeal as a regulatory win that protects innovation and user anonymity.

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CONTENT

  • OpenAI’s CPO on How AI Changes Must-Have Skills

    • Kevin Weil explains why model ensembles, eval writing, and chat interfaces are reshaping product and AI workflows.

    • He introduces ‘vibe coding’—using intuition plus AI to quickly iterate on startup ideas and internal tools.

    • Weil emphasizes hiring for ambiguity tolerance and says today's AI is the worst we’ll ever use.

  • Is Human Data Enough? With David Silver

    • David Silver contrasts human-trained AI with experience-based systems like AlphaZero that learn through self-play.

    • He calls this shift the ‘era of experience,’ a new path toward general intelligence and autonomy.

    • Silver argues future AI breakthroughs will rely less on data and more on real-time adaptive learning.

  • Uber Founder on AI, Risk, and Building the Future w/ Travis Kalanick

    • Travis Kalanick reflects on scaling Uber, and CloudKitchens, and using AI to digitize physical-world infrastructure.

    • He shares lessons on timing, conviction, and navigating resistance when leading market-disruptive ventures.

    • Kalanick predicts AI will reshape consulting, logistics, and entrepreneurship with relentless speed and precision.

AND MORE…

  • OpenAI Enhances ChatGPT With Comprehensive Memory Feature

    • ChatGPT can now reference previous chats to improve context and personalization across all future conversations.

    • The feature rolls out to Plus and Pro users, with exclusions in Europe due to regulatory hurdles.

    • Users can review, edit, or delete stored memory items directly in the settings for full control.

  • Mira Murati’s AI Startup Aims For Record-Breaking $2 Billion Seed Round

    • Mira Murati’s new company, Thinking Machines Lab, reportedly seeks up to $2 billion for its first round.

    • The startup includes several OpenAI alumni and focuses on making AI more customizable and widely useful.

    • Investors say the round could surpass all past early-stage AI funding milestones if completed successfully.

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  • Fintech Founder Charged With Fraud Over Misrepresented AI Capabilities

    • Nate founder Albert Saniger allegedly misled investors by claiming the app used AI to automate online purchases.

    • Investigators discovered outsourced workers in the Philippines were manually completing checkouts marketed as fully autonomous.

    • Saniger raised $50 million before the company collapsed and now faces federal wire fraud and conspiracy charges.

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