When regulation becomes a power game
The AI rules fight isn’t about fairness, it’s about leverage. Here’s what founders should learn.
Hey there,
Things have been busy for me lately. Many founders are finishing up their 2025 plans, and I’ve spent the last two weeks on strategy calls, fixing hiring plans, and helping teams get organized before December. It’s the typical Q4 rush. As the year ends, everyone realizes they can’t carry old problems into January.
I’m looking forward to a slower day tomorrow. Thanksgiving is my time to reset—some family time, a chance to relax, and then it’s back to planning.
If you want help with your 2026 talent strategy, I have some openings again. Just reply and we can set something up.
Let’s get into it.
🌐 News Shortlist
1. Sacks vs. State AI Laws: What Really Matters
Recap: A leaked memo showed that David Sacks wanted an executive order to stop states from regulating AI and give all control to the federal government, where he could have more influence. The order didn’t go through, but it still raised concerns in Sacramento and DC.
Most people focused on the personalities involved, like Sacks, Newsom, and OpenAI, but that only matters if it changes how founders build. This wasn’t really a scandal. It was a power move by a wealthy investor trying to make things easier for his own investments.
The main problem is execution risk. If you’re working in AI, you should expect regulations to change every few months. California will have one approach, Texas another, and DC a third. This isn’t just background noise—it’s the reality you have to work with.
The biggest mistake founders make is waiting for ‘regulatory clarity.’ That clarity will never come. People with connections will always try to influence the rules for their own benefit. Everyone else needs to build systems that can handle ongoing changes.
Advice:
Expect frequent changes. Move fast, follow the rules, and don’t assume things will be fair. Success comes from earning users’ trust and having a team that can adapt faster than the rules change.
2. HP Is Cutting 6,000 Jobs. Should You Care?
Recap: HP plans to cut 4,000 to 6,000 jobs by 2028, saying the move is about making operations more efficient with AI and cutting costs for the long term. They want to automate internal tasks and save almost $1 billion in the next few years.
Large companies can make these changes because they have the resources to do it. They have IT teams to build the systems, money to buy the right tools, and processes to change how things work. When HP says “AI will replace these roles,” they mean it. They really can build the technology to take over these jobs.
Most startups can’t do this, and small teams definitely can’t. Trying to copy these big-company moves can hurt your team. If your business is working well and your people are doing a good job, you don’t need to follow a plan made for a company with 50,000 employees.
If you want your business to run better, don’t just fire the person doing the job. Instead, look for someone who can do it much better. If that person costs too much in the US, try looking in places where top talent is more affordable.
Advice:
Don’t make decisions based on what big companies do. Focus on what’s happening in your own business.
3. Where investors are putting their money in late 2025
Recap: Last week’s global funding roundup shows investors are still putting big money into AI infrastructure, automation, and vertical SaaS. Examples include accounting tools like Numeric, humanoid robotics from Flexion, AI legal operations with Norm AI, creator economy platforms like Agentio, and startups focused on agtech and fashion supply chains.
Looking at the bigger picture, a clear pattern emerges. Investors are backing products that are either core infrastructure or closely tied to revenue. They want tools that help companies work faster, replace slow manual tasks in important workflows, or serve a specific industry where buyers can see real savings or earnings. “AI for vibes” is no longer getting funded.
For founders in Latin America or nearby, this is a key signal. While many investments are happening in other regions, these trends matter everywhere. If you’re building a startup, consider your role.
Are you just a nice-to-have app, or are you part of payments, accounting, logistics, or the creative process? Your place in the stack is more important than ever.
Advice:
If you want investors to notice you in 2026, focus on areas where money moves or where work is especially hard. Choose a specific industry, go deep, and solve one costly problem so well that your value is clear on a P&L, not just in your pitch.
That’s it for this week.
If you’re planning out your 2026 team, don’t wait for January like everyone else. The founders who win next year are already making decisions now.
And if you want to pressure-test your hiring plan or rethink how you’re using global talent, I’ve opened a few slots next week. Grab one and we’ll walk through it together.
Until next time,
Joseph Burns
CEO & Founder, Lupa