A narrow House vote advanced a sweeping budget package that restricts AI oversight at the state level, rolls back clean energy incentives, limits healthcare coverage, and boosts surveillance tech at the U.S. border.
Backed strongly by Donald Trump, the bill now moves to the Senate, where internal Republican concerns could complicate its path to becoming law.
🚨🚨Trump’s demonic ‘big beautiful budget bill’ prohibits states from interfering with federal AI programs and development and also MACHINE decision making for TEN YEARS. 🚨🚨 https://t.co/RLHmR2Mt7u
AI regulation paused at the state level The bill proposes a ten-year block on state governments passing or enforcing laws that regulate AI or automated systems. That could override a wave of new state laws expected in 2025, and even halt enforcement of many already on the books — some of which address algorithmic bias, AI use in government, or consumer protection.
Supporters argue this is necessary for U.S. companies to remain competitive against China, and some AI developers have endorsed the move. According to the National Conference of State Legislatures, more than 60 AI-related state bills have already been passed — many of which could be nullified under the federal moratorium.
Critics say the definition is too broad and could interfere with laws regulating automated decision-making, even if those systems aren’t technically AI. Some of those laws were introduced by Republicans themselves in areas like content moderation and algorithm transparency.
“Until there’s a federal law, states need authority” Sen. Marsha Blackburn (R-TN), who may run for governor, expressed concern about losing local control. She referenced Tennessee’s recently passed AI law that protects artists’ voices from being replicated without consent. “We know those protections matter in Tennessee,” she said during a recent hearing. “We need federal clarity before we take state options off the table.”
Sen. Josh Hawley (R-MO), who opposed Medicaid cuts in the same bill, also raised red flags about blocking state oversight. “As a matter of federalism, states should be able to test out policies that fit their people,” Hawley told reporters. “AI deserves smart rules, not a vacuum.”
The rule may also face hurdles under the Senate’s Byrd rule, which prevents unrelated policy items from being included in reconciliation bills.
EV and green energy tax breaks targeted Federal credits for electric vehicles would be phased out within two years, and many clean energy tax incentives would be ended early under the proposed bill. The rollback includes:
A $7,500 credit for new electric vehicle purchases
A $4,000 credit for qualifying used EVs
Tax credits for EV charging equipment at home
Additional updates reduced climate programs previously protected under the 2022 Inflation Reduction Act. Some nuclear-related credits survived, but wind, solar, and infrastructure benefits were significantly narrowed.
something going overlooked in trump's new "big beautiful" spending bill that house GOP just passed: it prohibits any state or locality from passing any law that would regulate or restrict AI, for the next ten years. unimaginably devastating for the internet and society in general pic.twitter.com/3YugsJlPCe
— peyton for the last time (@silktoffee07) May 22, 2025
Consumer protection agency funding capped The Consumer Financial Protection Bureau (CFPB) — which had already seen major changes under the Department of Government Efficiency — would see its budget slashed further. Under the House bill, the CFPB would be limited to receiving only 5% of the Federal Reserve’s operating budget, down from the current 12%.
That would shrink its ability to handle consumer complaints, regulate digital payments, and protect borrowers from fraud or aggressive collection actions.
Billions pledged to border surveillance systems The proposed budget includes major increases in border enforcement funding. That includes:
$12 billion for state reimbursement programs for border security
$46 billion for wall expansion and upgrades
$2.7 billion for surveillance tech
$1 billion for drug and contraband detection systems
The bill outlines funding for unmanned drones, ground sensors, surveillance towers, tunnel detection equipment, and new communication tools aimed at expanding surveillance across the U.S.-Mexico border.
Restrictions on gender-affirming care added Starting in 2027, health plans sold through the Affordable Care Act would be barred from covering gender-affirming treatments, including hormone therapy and surgeries. The bill also prohibits Medicaid from funding gender transition services for minors and adults — while requiring it to cover procedures related to detransition.
The language mirrors similar state-level restrictions introduced in recent years and signals a national approach to limiting access to this type of care through public health programs.
ServiceNow’s acquisition of Armis marks the company’s biggest deal to date as cybersecurity consolidation accelerates.
ServiceNow has agreed to acquire cybersecurity startup Armis for $7.75 billion, marking the largest acquisition in ServiceNow’s history as it accelerates its expansion into security and artificial intelligence.
The Santa Clara, California–based company will pay all cash for the San Francisco–based firm, according to a statement released Tuesday, confirming an earlier report by Bloomberg News. The transaction is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions.
Market reaction and deal financing
ServiceNow shares slipped about 1.3% in early premarket trading in New York following the announcement. The stock had closed up roughly 0.9% on Monday, valuing the company at approximately $163 billion.
ServiceNow said it plans to fund the acquisition through a combination of cash on hand and debt, underscoring its confidence in Armis’ long-term growth and strategic value.
What Armis brings to ServiceNow
Founded by veterans of Israeli military cyber intelligence, Armis specializes in identifying, monitoring and securing connected devices across complex digital environments. Its platform is widely used in sectors including healthcare, financial services, manufacturing, and defense, where visibility into unmanaged or vulnerable devices is critical.
Earlier this month, Armis CEO Yevgeny Dibrov said the company had reached $300 million in annual recurring revenue, up from $200 million a year earlier. Despite the rapid growth, Armis had been planning a public listing in 2026, a goal now superseded by the ServiceNow deal.
ServiceNow’s broader AI and security push
ServiceNow has been steadily transforming itself into a dominant enterprise workflow and automation platform. In March, the company agreed to acquire AI startup Moveworks for $2.85 billion, a move aimed at building autonomous AI tools capable of completing workplace tasks without human intervention.
“ServiceNow is building the security platform of tomorrow,” said Amit Zavery, the company’s president, chief operating officer, and chief product officer.
“Together with Armis, we will deliver an industry-defining cybersecurity shield that provides real-time, end-to-end proactive protection across all technology estates,” Zavery said.
Cybersecurity dealmaking accelerates
The Armis acquisition comes amid a surge in large cybersecurity transactions, driven by growing enterprise demand and the rising use of AI to detect and counter hacking threats.
In recent months:
Alphabet agreed to buy cloud security firm Wiz for $32 billion
Palo Alto Networks struck a deal to acquire CyberArk for about $25 billion
Armis itself was acquired in 2020 by Insight Partners in a deal valued at $1.1 billion, alongside investors including CapitalG. Private equity firm Thoma Bravo had also explored a potential investment, with Armis executives previously saying they were evaluating multiple offers.
What’s next
Once completed, the acquisition is expected to significantly strengthen ServiceNow’s security portfolio, positioning the company as a key player in AI-powered enterprise cybersecurity at a time when digital infrastructure risks are multiplying.
Disney’s partnership with OpenAI signals how major studios may integrate AI into content, merchandising, and fan engagement
When Disney announced a three-year alliance with OpenAI, including a reported $1 billion investment and licensing its iconic characters for use in AI-generated images and short videos, the deal left many observers puzzled. After all, recent content partnerships between OpenAI and platforms like Reddit have raised uncomfortable questions about whether the money is worth the long-term competitive and brand risks.
But Disney’s deal makes far more sense when viewed through a lens the company understands better than almost anyone: merchandising.
For decades, Disney has mastered the art of turning intellectual property into obsession, engagement, and spending. Toys, backpacks, lunchboxes, theme parks, movies, cruise lines — all are part of a tightly controlled ecosystem designed to keep fans immersed. With OpenAI, Disney isn’t abandoning that playbook. It’s updating it.
Instead of plastic figurines, the new merchandise is synthetic content — AI-generated images and videos created by fans themselves using ChatGPT and Sora, OpenAI’s text-to-video generator. Anyone can now generate Disney-adjacent creative output, but under rules that Disney helps define.
AI as the Next Merchandising Channel
At first glance, allowing fans to generate content featuring Disney characters may appear risky, especially for a company long known as a highly curated, “predator-free” brand sanctuary in an internet dominated by chaotic user-generated content — or what critics increasingly call “AI slop.”
Yet this is precisely why Disney’s approach stands out.
Rather than fighting AI outright, Disney is licensing its characters under controlled conditions, positioning itself inside the technology rather than outside it. In doing so, it gains something arguably more valuable than licensing fees: influence over how its IP is used.
OpenAI has publicly committed to “responsible use” of Disney’s content, reducing the risk of beloved characters being placed in offensive, bizarre, or legally risky scenarios — or interacting with rival corporate IPs in ways Disney cannot control.
At the same time, Disney has made it clear it will aggressively defend its characters elsewhere. The company recently sent a letter to Google demanding it stop using Disney characters in AI-generated content without permission. The message is clear: AI use is allowed — but only on Disney’s terms.
Strategic Upside Beyond Licensing
Beyond brand protection, the OpenAI alliance offers Disney several strategic advantages.
First, by taking an equity stake, Disney is effectively hitching its future to the first major AI mover in consumer-facing generative technology. If OpenAI becomes as foundational as search or social media, Disney isn’t just a customer — it’s a stakeholder.
Second, Disney gains access to OpenAI’s tools, opening new creative and operational possibilities across film, television, marketing, and theme park experiences. In an industry under constant pressure to produce more content faster, AI-assisted workflows could become a competitive necessity.
There is also a discovery angle. If fans create something genuinely magical using Disney IP, the company can surface that work on its streaming platforms or internal creative pipelines. Just as YouTube became a feeder system for Hollywood talent, AI could quietly become a testing ground for future Pixar, Marvel, or animation concepts.
Engagement Over Everything
Critics will argue that Disney is aligning itself with what many still see as the entertainment industry’s newest villain. And history suggests that user-generated ecosystems inevitably produce strange, uncomfortable, or downright bizarre content.
But Disney’s calculus is simple: engagement beats purity.
Even if some brand dilution occurs, the upside of keeping millions of users actively interacting with Disney characters — thinking about them, remixing them, and emotionally investing in them — far outweighs the risks. Every AI-generated image or short video becomes another touchpoint in the Disney funnel, nudging users toward movies, merchandise, theme parks, and subscriptions.
As the company has proven time and again, Disney doesn’t need to control every moment — it just needs to own the ecosystem those moments live in.
A Template for Future AI Deals
Ultimately, Disney’s OpenAI alliance may become the template for how major IP holders navigate the AI era. Rather than blocking generative tools outright or selling content libraries cheaply, Disney is treating AI as the next distribution and merchandising layer.
The pipeline that once ran from movies to toys to theme parks now runs through algorithms, prompts, and synthetic media. AI is no longer outside the business. It is part of the machine.
And if Disney’s history is any guide, once the House of Mouse embraces a platform, it rarely lets go.
After Losing Over $70 Billion, Mark Zuckerberg Finally Admits His Biggest Bet Is “Not Working” – Meta Plans Massive Cuts to Metaverse Budget
Meta’s multibillion-dollar Metaverse dream faces a harsh reset as Zuckerberg prepares to slash Reality Labs spending by 30% and shift focus toward AI superintelligence
After years of mounting losses, Meta prepares to slash Metaverse spending as Zuckerberg pivots the company toward AI superintelligence.
It has taken more than $70 billion in losses, multiple years of market skepticism, slow hardware adoption, and declining enthusiasm from consumers — but Mark Zuckerberg finally seems to be acknowledging what analysts have been predicting for months: Meta’s Metaverse gamble is not working as expected.
A new report from Bloomberg reveals that Meta is preparing to cut Reality Labs’ budget by nearly 30%, marking the most significant shift in strategy since the company rebranded from Facebook to Meta in 2021. These cuts are part of Meta’s 2026 annual budget plans, discussed at a series of executive meetings held last month at Zuckerberg’s Hawaii compound.
The move represents a dramatic retreat from the vision that defined Zuckerberg’s ambitions for the future — a world of interconnected virtual experiences accessed through VR headsets, smart glasses, and immersive environments.
Reality Labs: A Costly Dream That Failed to Take Off
Reality Labs, the division responsible for Meta’s Metaverse ambitions, includes:
VR hardware such as the Quest headsets
Ray-Ban smart glasses developed with EssilorLuxottica
Horizon Worlds, Meta’s VR social platform
Upcoming AR glasses
Despite years of R&D and aggressive marketing, the Metaverse never reached mainstream adoption. Sales remained modest, interest faded, and Horizon Worlds failed to retain users beyond niche gaming communities.
Industry analysts say the lack of traction is undeniable. The Metaverse that Zuckerberg promised — a bustling, interconnected digital universe — simply hasn’t materialized.
The financial impact has been staggering: $70+ billion in operating losses across four years, making it one of the most expensive product bets in tech history.
Not surprisingly, Meta’s stock jumped 4% after news of the possible budget cuts, signaling investor relief. As analyst Craig Huber put it: “Smart move, just late… This is a major shift to align costs with a revenue outlook that never matched management’s expectations.”
With cuts as deep as 30%, layoffs are expected as soon as January, especially within the VR division.
A Company Pivoting Hard Toward AI Superintelligence
Meta’s Metaverse retreat isn’t happening in isolation — it comes at a time when the company is fighting to stay competitive in the global AI arms race.
After its Llama 4 model received a lukewarm response, Meta has ramped up spending and reorganized its AI divisions under the new Superintelligence Labs.
Key highlights of Meta’s AI pivot:
Up to $72 billion committed in capital spending for AI initiatives this year
Aggressive hiring across Silicon Valley, with multimillion-dollar offers made directly by Zuckerberg
Plans to invest $600 billion in U.S. infrastructure and jobs over the next three years, largely for AI data centers
A renewed push to build the compute infrastructure needed for future superintelligent systems
Zuckerberg openly stated during an earnings call that Meta is “front-loading capacity” to prepare for an AI-driven future.
Even Reality Labs is being reimagined through the AI lens — especially after Zuckerberg hired Alan Dye, a longtime Apple design executive, to lead a new creative studio within the division.
In a post on Threads, Zuckerberg said: “We’re entering a new era where AI glasses and other devices will change how we connect with technology and each other.”
This statement alone signals how deeply AI will shape Meta’s hardware roadmap beyond the Metaverse.
The Irony: Meta Was Renamed for a Vision That Is Now Shrinking
When Facebook became Meta in October 2021, the reasoning was clear: the company wanted to symbolize its commitment to building the Metaverse.
Three years later, that same division is facing massive cuts.
The rebranding — once touted as the gateway to the “next chapter of the internet” — now represents one of the most expensive strategic misfires in tech history.
What Comes Next for Meta?
If the proposed budget cuts go through:
VR development may significantly slow down
Horizon Worlds could receive limited investment
AR glasses may remain in early stages
Meta will prioritize AI innovation over virtual reality
This shift doesn’t necessarily mean Meta is abandoning the Metaverse entirely — but it is no longer the company’s primary bet.
Zuckerberg’s new focus is clear: AI superintelligence, compute hardware, and next-generation devices powered by AI.
And while the Metaverse may have faded from the spotlight, Meta’s aggressive push into AI signals a new chapter — one where Zuckerberg hopes the investment will pay off sooner rather than later.
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