Axios

Dude Perfect will invest more in toys, gaming, new content around women's sports and live events, newly named CEO Andrew Yaffe said at Axios' BFD event alongside co-founder Coby Cotton.

Why it matters: The sports and comedy brand, best known on YouTube, is gearing up for a big expansion after raising more than $100 million.

Forms of generative AI are playing a role in all of Vista Equity Partners' portfolio companies, founder Robert Smith said at Axios BFD, and are driving innovation across product lines.

Why it matters: Smith made the point that AI innovation is not leading to headcount reductions inside his firm or within Vista's portfolio company universe.

Walmart is jumping into same-day prescription drug delivery in direct competition with its rival Amazon and struggling drugstores.

Why it matters: It's the latest battleground in a rapidly changing pharmacy retail industry.

Heightened regulation is a major stumbling block for innovation and dealmaking, Nasdaq CEO Adena Friedman told Axios on Tuesday.

Why it matters: The FTC and DOJ have ramped up enforcement actions in response to the growing number of large transactions, leading to nearly a dozen mergers abandoned or restructured last year alone.

Russia was behind recent social media posts making baseless and salacious claims about Minnesota Gov. Tim Walz, U.S. intelligence officials said Tuesday.

Why it matters: It's the latest example of foreign actors trying to shape the outcome of U.S. elections by promoting false narratives online.

The Securities and Exchange Commission fined four cybersecurity companies for downplaying to investors the impact the 2020 Russian hack of SolarWinds had on their own systems.

Why it matters: It's rare to see companies come under regulatory fire for cybersecurity disclosures.

TollBit, a two-sided marketplace for publishers and AI companies, has raised a $24 million series A round led by Lightspeed Venture Partners, executives told Axios.

Why it matters: TollBit hopes its marketplace can reduce the legal and business friction that's made data-sharing between the media industry and AI firms tense and complicated.

@ D.C.

❌ The Justice Department proposed new rules for carrying out an executive order that would ban data brokers from selling Americans' data to China, Russia and other adversarial nations. (Reuters)

🪖 The Defense Department is considering asking technology executives to become part-time military officers in the reserves, where they could help with short-term cybersecurity, data analytics and other projects. (Wall Street Journal)

🔍 A look at what it may mean if former President Donald Trump is re-elected and fulfills his promise to revoke President Joe Biden's AI executive order. (Wired)

@ Industry

👋🏻 ICYMI: We're reading "Sandworm" by Wired reporter Andy Greenberg for our first Codebook Book Club pick.

• 📖 I'm about halfway through, and it's stunning to me in hindsight how novel attacks on critical infrastructure felt at the time. Now, I'm reporting on them all the time!
• 🤔 Have questions for Andy about his reporting as you're reading? Hit reply.

OpenAI and its minority owner Microsoft are funding a $10 million AI collaborative and fellowship program operated by the Lenfest Institute, a nonprofit that supports local journalism.

Why it matters: The partnership represents the largest local news development collaborative working on AI specifically, per Jim Friedlich, executive director and CEO of The Lenfest Institute.

After two years of doom and gloom, digital health deals are showing signs of life, with venture capital firms making more focused bets and interest rate cuts rekindling some of the COVID-era optimism around the sector.

Why it matters: The pandemic experience was supposed to be a boon for direct-to-consumer disease treatments, digital therapeutics and decentralized care.

The arrival of on-device AI could radically reshape the app/app-store model that has ruled the tech industry in the smartphone era.

Why it matters: Apple and Google have dominated the mobile era by controlling the two major smartphone ecosystems and their associated app stores.

AI-powered election disinformation is lurking in the shadows of social media, and many might not spot it before they cast their votes this year.

Why it matters: Margins for several major U.S. elections — including the presidential race — are razor thin.

Elon Musk, Tesla and Warner Brothers Discovery are being sued by "Blade Runner 2049" production firm Alcon Entertainment for alleged copyright infringement, which accused them on Monday of "a massive economic theft."

The big picture: Alcon alleges the defendants used an AI-generated image like the one from "Blade Runner 2049" to promote Tesla's robotaxi concept at Warner Bros. Discovery's studio lot in Burbank, California, earlier this month after it denied their request to use "an iconic still" from the 2017 movie at the event.