Is this email difficult to read? View it in a web browser. ›

The Wall Street Journal ProThe Wall Street Journal Pro

CybersecurityCybersecurity

Sponsored by Zscaler logo.

Inside Big Tech’s Push to Kill State AI Laws

By James Rundle

 

Good day. Big technology companies and prominent Silicon Valley figures have been lobbying the Trump administration hard to find a way to preempt state regulations on artificial intelligence.

The long-running battle over whether the states or the federal government has primacy in AI regulation took several turns this week, with a ban on state laws omitted from the omnibus defense spending bill. Nonetheless, President Trump has pledged to address the issue in an executive instead.

Behind the scenes, companies such as Nvidia, and powerful tech titans including Marc Andreessen, have been telling the government that a patchwork of state rules must be avoided. Others, including Florida Gov. Ron DeSantis, have sharply disagreed.

Read our full story here.

Also today:

  • Finra to prioritize cyber.
  • Pentagon plans zero-trust update.
  • Healthcare organizations rail against cyber rules.
 

‏‏‎ ‎

CONTENT FROM: ZSCALER
Is Your Cybersecurity Ready for AI?

AI is a risk multiplier, exploiting weaknesses in legacy systems like firewalls and VPNs at machine speed. Zscaler CEO Mr. Chaudhry and WSJ’s Ms. Mirchandani emphasize the urgency to act—Zero Trust + AI is essential to protect data, AI models and agents. Don’t let outdated architectures leave you vulnerable—embrace Zero Trust + AI now to stay resilient against evolving threats.

Watch the 3-minute video

 

National Security

PHOTO: JOHN G MABANGLO/EPA/SHUTTERSTOCK

U.S. Requires China Chips Review. The federal government will impose a stringent security review on Nvidia’s H200 AI chips before they can be exported to China, routing shipments through the U.S.  for inspection. The decision reflects Washington’s concern that advanced AI hardware could undermine U.S. national-security interests, while allowing China access under tightly controlled conditions. (WSJ)

PHOTO: DANIEL SLIM/AFP/GETTY IMAGES

Pentagon Plans Zero-Trust Strategy Update in 2026. The Defense Department will release an update to its zero-trust strategy in early 2026, expanding its scope beyond traditional IT to include operational technology, Internet-of-Things devices, critical infrastructure and weapon systems. The revised plan will build on the Pentagon’s existing model and align with its goal for all components to meet zero-trust requirements by 2027. (DefenseScoop)

 

Cybersecurity Industry

PHOTO: FRED TANNEAU/AFP/GETTY IMAGES

Insurers Venture into Deepfakes. Cyber-insurance provider Coalition announced that its policies will now cover incidents where AI-generated deepfakes or manipulated media cause reputational harm, including forged video, audio or images that falsely portray employees or misrepresent a company’s products. (CyberScoop)

 

Regulation

PHOTO: MEGAN VARNER/BLOOMBERG NEWS

Healthcare Groups Urge Backtrack on Cyber Rules. More than 100 major healthcare providers and associations sent a letter to the U.S. Department of Health and Human Services, urging it to abandon a proposed overhaul of the Health Insurance Portability and Accountability Act’s security rules. The organizations said the draft rule’s financial burden and tight compliance deadlines would impose “crushing and unprecedented” burdens on healthcare providers. (Fierce Healthcare)

Cyber Flagged as Finra Priority in 2026. The Financial Industry Regulatory Authority said in its 2026 regulatory agenda that it will target emerging risks, including generative-AI misuse and cyber-enabled fraud. The notice warns that brokers and investment advisers must improve oversight of AI tools and strengthen fraud detection. (InvestmentNews)

 

About Us

The WSJ Pro Cybersecurity team is Deputy Bureau Chief Kim S. Nash and reporters Angus Loten, and James Rundle. Follow us on X @WSJCyber. Reach the team by replying to any newsletter you receive or by emailing Kim at kim.nash@wsj.com.

 
Share this email with a friend.
Forward ›
Forwarded this email by a friend?
Sign Up Here ›
 
Desktop, tablet and mobile. Desktop, tablet and mobile.
Access WSJ‌.com and our mobile apps. Subscribe
Apple app store icon. Google app store icon.
Unsubscribe   |    Newsletters & Alerts   |    Contact Us   |    Privacy Notice   |    Cookie Notice
Dow Jones & Company, Inc. 4300 U.S. Ro‌ute 1 No‌rth Monm‌outh Junc‌tion, N‌J 088‌52
You are currently subscribed as [email address suppressed]. For further assistance, please contact Customer Service at pro‌newsletter@dowjones.com or 1-87‌7-975-6246.
Copyright 2025 Dow Jones & Company, Inc.   |   All Rights Reserved.
Unsubscribe