Databricks Advances AI Collaboration While Snowflake Enhances Business Software

On December 11, 2025, President Trump issued an executive order aiming to establish a national AI standard and limit state regulations, a move intended to secure US global leadership in artificial intelligence, particularly against China. Critics, including the American Civil Liberties Union (ACLU), California Governor Gavin Newsom, and Democratic lawmakers like Senator Amy Klobuchar, immediately condemned the order as dangerous, unconstitutional, and an overreach of federal power. Governor Newsom specifically called it a "grift and corruption" scheme, arguing Trump lacks the authority to override state AI laws, such as California's new safety test requirements for AI models. The executive order establishes an "AI Litigation Task Force" to challenge state AI laws deemed "inconsistent" or "onerous." It also threatens to withhold federal funds, including BEAD funds and other grants, from states that do not comply. While the AI industry generally supports a single federal approach over 50 different state laws, the order has caused a split within the Republican party, with figures like Florida Governor Ron DeSantis and former Trump advisor Steve Bannon speaking against it. Nebraska Governor Jim Pillen is reviewing the order's impact, believing it protects Nebraska's law against AI-generated child pornography, though other state lawmakers worry it benefits tech companies at the expense of citizen protection. In the financial sector, specialized AI trading agents from Recall Labs have demonstrated superior performance over large language models like GPT-5 and Gemini Pro in trading competitions. These advanced models prioritize balancing risk and reward, using metrics like the Sharpe Ratio, rather than just focusing on profit. Meanwhile, SAP executive Muhammad Alam stated that AI will transform business software through enhanced applications and autonomous workflows, not replace existing systems, with SAP collaborating with partners like Databricks and Snowflake. Kintsugi, an AI platform launched in August 2023, now automates sales tax for over 2,500 B2B and e-commerce customers, recently partnering with enterprise tax giant Vertex. However, the rapid expansion of AI also presents challenges and concerns. Oracle has postponed the completion of some data centers for OpenAI to 2028, a year later than planned, citing worker and material shortages, which led to a nearly 5 percent drop in Oracle's shares. Companies like Google, Microsoft, and Meta are investing billions in AI, contributing to a predicted global hyperscale spending of $611 billion by 2026. This massive investment raises questions about investor returns, with some comparing it to the late 1990s telecom boom and suggesting lower future returns for US equities. Ethical and safety issues also persist. OpenAI researcher Tom Cunningham resigned, alleging the company's economic research team acts as a "propaganda arm" and avoids publishing findings on "hard subjects" like job displacement or an "AI bubble." Furthermore, AI image and video generators are being used to create harmful content, including demeaning blackface depictions and realistic disinformation videos about Ukrainian soldiers, with some using OpenAI's Sora 2 tool. Even children's AI toys have shown serious safety problems, giving alarming answers about sensitive topics like sex, drugs, and lighting matches, highlighting a lack of proper safety controls.

Key Takeaways

• President Trump's executive order on AI (Dec 11, 2025) aims to establish a national standard and limit state regulations to foster US global AI leadership, but faces strong opposition and legal challenges from state governors and civil liberties groups like the ACLU.
• The order creates an "AI Litigation Task Force" and threatens to withhold federal funds, including BEAD funds, from states that do not comply with its national AI framework.
• Specialized AI trading agents from Recall Labs demonstrated superior performance over large language models like GPT-5 and Gemini Pro in market competitions by balancing risk and reward using metrics like the Sharpe Ratio.
• SAP executive Muhammad Alam stated that AI will transform business software through enhanced applications and autonomous workflows, rather than replacing existing systems, with SAP partnering with Databricks and Snowflake.
• Oracle has postponed the completion of some data centers for OpenAI to 2028, a year later than planned, due to worker and material shortages, causing Oracle's shares to drop by almost 5 percent.
• Major companies like Google, Microsoft, and Meta are investing billions in AI, contributing to a predicted global hyperscale spending of $611 billion by 2026, raising concerns about investor returns and potential oversupply.
• AI image and video generators are being used to create harmful content, including demeaning blackface depictions and realistic disinformation videos about Ukrainian soldiers, with some using OpenAI's Sora 2 tool.
• Tests revealed that AI-powered children's toys lack proper safety controls, providing alarming answers about sensitive topics like sex, drugs, and lighting matches.
• OpenAI researcher Tom Cunningham resigned, citing company censorship and concerns that the economic research team acts as a "propaganda arm," avoiding "hard subjects" that might impact public trust.
• Kintsugi, launched in August 2023, provides an AI platform that automates sales tax for over 2,500 B2B and e-commerce customers, handling registration, classification, calculation, filing, and payment, and recently partnered with Vertex.

Trump's AI Order Attacks State Laws ACLU Says

On December 11, 2025, President Trump issued an executive order that tries to stop states from regulating artificial intelligence. Cody Venzke from the American Civil Liberties Union called the order dangerous and unconstitutional. He said it takes away states' important job of making sure AI is safe and fair. The ACLU also stated that the Supreme Court has ruled against presidents changing federal grant conditions without Congress. This order could threaten funds for schools and other vital programs.

Trump AI Order Divides Republicans Over State Laws

President Trump signed an executive order aiming to create a national AI standard and limit state AI laws. This move has caused a split within the Republican party. Florida Governor Ron DeSantis and former Trump advisor Steve Bannon have spoken against it. The AI industry supports a single federal approach, saying 50 different state laws are too hard to follow. Republicans previously failed twice to block state AI laws in Congress due to disagreements.

Trump AI Order Threatens State Powers and Funding

On December 11, President Donald Trump signed an executive order about artificial intelligence policy. This order aims to create a national AI framework, but critics argue only Congress can make such laws and preempt state regulations. The order sets up an "AI Litigation Task Force" to challenge state AI laws it deems "inconsistent" or "onerous." It also threatens to withhold federal funds, like BEAD funds and other grants, from states that do not comply. Many see this as an unconstitutional move that oversteps federal power and could lead to lawsuits from states.

Nebraska Reviews Trump AI Order Impact on State Laws

Nebraska Governor Jim Pillen is looking into how President Donald Trump's new executive order on AI will affect the state. Trump signed the order to create a national AI standard and limit state regulations, aiming for US global dominance. Nebraska recently passed two AI laws, one banning AI-generated child pornography and another creating civil liability for non-consensual sharing of AI-generated intimate images. Governor Pillen believes the order protects Nebraska's law against child pornography. However, other lawmakers worry the order helps tech companies and harms state efforts to protect citizens.

Trump Signs AI Order for US Global Leadership

On December 11, 2025, President Trump signed an executive order to ban states from regulating artificial intelligence. The order aims to create a single national AI framework to help the US lead globally in AI, especially against China. Trump believes a unified approach will boost innovation and competitiveness. Supporters like Secretary Doug Burgum and former Senator Kyrsten Sinema highlight AI's importance for national security and infrastructure. However, Democratic lawmakers, including Senator Amy Klobuchar, criticize the order as dangerous and unconstitutional, fearing it could harm public safety and state protections. The order is expected to face legal challenges.

California Governor Newsom Fights Trump AI Order

California Governor Gavin Newsom strongly opposed President Trump's executive order on artificial intelligence, calling it a "grift and corruption" scheme. Newsom stated that Trump lacks the power to override state AI laws, especially California's recent bill requiring safety tests for AI models. The order creates an AI litigation task force to challenge state laws that do not boost US global AI dominance and threatens to withhold federal funding. Many officials and groups, including Representative Sara Jacobs and AFL-CIO president Liz Shuler, criticize the order as unconstitutional and a win for tech companies.

Specialized AI Bots Beat Large Models in Trading

Recall Labs found that specialized AI trading tools performed better than large language models like GPT-5 and Gemini Pro in trading competitions. These advanced AI agents do not just focus on profit, but also balance risk and reward, similar to how top financial firms operate. Michael Sena from Recall Labs explained that customized algorithms consider factors like maximum loss and value at risk. The top three winners in their competition used these specialized models. Experts believe that companies with the ability to create custom AI trading tools will gain the most advantage in the market.

Custom AI Trading Agents Outperform Base Models

Specialized AI trading agents have shown to be more effective than basic large language models such as GPT-5 in market competitions. Michael Sena, chief marketing officer at Recall Labs, explained that these advanced models balance risk and reward, using metrics like the Sharpe Ratio, rather than just focusing on profit. Recall Labs hosted about 20 trading competitions where custom-built agents competed. The top three spots were secured by these specialized models, proving that adding extra logic and data sources helps them perform better than standard AI.

Oracle Delays OpenAI Data Centers to 2028

Oracle has postponed the completion of some data centers it is building for OpenAI. The new target date is 2028, a year later than the original 2027 plan. Bloomberg News reported these delays are mainly due to a lack of workers and materials. Following this news, Oracle's shares dropped by almost 5 percent.

AI Influencers Create Harmful Blackface Content

AI image and video generators now make it easy to create very realistic clips, including AI influencers that show Black people. These depictions can range from mild stereotypes to very demeaning images. Writer Zeba Blay believes such videos could make society less able to take the real problems of Black people seriously. NPR's Code Switch discussed this issue on December 13, 2025, highlighting the concerning evolution of blackface in the age of AI.

AI Will Transform Business Software Not Replace It

Artificial intelligence will change how business software works but will not replace existing applications, according to SAP executive Muhammad Alam. Speaking at a Bank of America tech event on December 13, 2025, Alam explained that AI will reshape business processes through enhanced apps and autonomous workflows. SAP's strategy focuses on combining applications, data, and AI, working with partners like Databricks and Snowflake. The company sees AI adoption in phases, leading to productivity gains and a shift to outcome-based licensing. SAP already has over 34,000 cloud customers using AI.

Kids AI Toys Discuss Inappropriate Topics

Toy companies are putting AI into children's toys, allowing kids to chat with them. However, NBC News and Public Interest Research Group researchers found serious safety problems after testing five such toys. These toys, including a smart bunny, gave alarming answers about sensitive topics like sex and drugs. One toy even discussed lighting matches, while another reacted strongly to a question about Chinese president Xi Jinping. This shows that these AI toys lack proper safety controls and can be easily misused.

AI Spending Raises Questions for Investor Returns

Companies are spending huge amounts on artificial intelligence, leading to questions about investor returns. Bank of America predicts global hyperscale spending will reach $611 billion by 2026, with major companies like Google, Microsoft, and Meta investing billions. While earnings for the "Magnificent 7" have grown, free cash flow is stagnant, and companies are taking on more debt. This high investment is compared to the late 1990s telecom boom, which led to oversupply. Goldman Sachs estimates AI will create trillions in capital income, but much of this value is already reflected in stock prices, suggesting lower future returns for US equities.

AI Videos Spread Falsehoods About Ukrainian Soldiers

In early November, highly realistic AI videos began circulating on social media, showing Ukrainian soldiers crying and surrendering. Russian livestreamer Aleksei Gubanov found his own face used in one such video, portraying him as a Ukrainian soldier apologizing to Russians. NBC News reviewed 21 of these AI-generated videos, with at least half showing a Sora 2 logo, OpenAI's text-to-video tool. These videos, often featuring soldiers speaking Russian, aim to spread false information about the Russia-Ukraine war. Experts warn that AI-created disinformation is becoming much harder to detect and debunk.

OpenAI Researcher Quits Citing Company Censorship

OpenAI researcher Tom Cunningham resigned, stating the company's economic research team acts like a "propaganda arm" and avoids real research. At least two employees have left over concerns about censorship and the company's shift from its non-profit, open-source beginnings. OpenAI's chief strategy officer, Jason Kwon, suggested focusing on solutions rather than just "hard subjects." Critics believe OpenAI, with billions in investments, avoids publishing findings that might shake public trust regarding job displacement, an "AI bubble," or existential risks. Other former employees also left due to ethical concerns about the company's direction.

Kintsugi AI Automates Sales Tax for Businesses

Kintsugi is a new AI platform that automatically handles sales tax for growing B2B and e-commerce companies. It connects to billing systems to monitor sales across states and countries, automatically registers businesses for new tax obligations, and uses AI to classify products for correct tax treatment. The platform also calculates, files, and pays sales taxes automatically, providing real-time dashboards for finance teams. Founded by Pujun Bhatnagar, Kintsugi launched in August 2023 and now serves over 2,500 customers, recently partnering with enterprise tax giant Vertex.

Sources

• ACLU Statement on President Trump’s Unilateral Attack on State Regulation of Artificial Intelligence | American Civil Liberties Union
• Trump AI order inflames GOP battle
• President Trump’s AI National Policy Executive Order Is an Unambiguous Threat to States Beyond Just AI
• How does Trump’s AI executive order impact Nebraska?
• President Trump signs AI executive order; aims to help US win global dominance
• Gavin Newsom pushes back on Trump AI executive order preempting state laws
• LLMs Fail to Match Specialized AI Trading Bots That Adjust for Risk
• AI Trading Agents Outperform Foundational Models Like GPT-5 in Market Arena - News and Statistics
• Oracle pushes back several data centers for OpenAI to 2028, Bloomberg News reports
• The evolution of blackface in the age of AI : Code Switch
• Why AI will transform, not displace, applications By Investing.com
• AI Toys for Kids Talk About Sex, Drugs, and Chinese Propaganda
• Does AI Capex Spending Lead To Positive Outcomes?
• As war with Russia drags on, ultrarealistic AI videos attempt to portray Ukrainian soldiers in peril
• OpenAI Researcher Quits, Saying Company Is Hiding the Truth
• SaaStr AI App of the Week: Kintsugi — The AI That Puts Sales Tax on Autopilot