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Senator Ted Cruz Proposes AI ‘Sandbox’ to Ease Federal Regulations

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U.S. Senator Ted Cruz on Wednesday introduced a bill that would create a regulatory “AI sandbox” allowing artificial intelligence companies to apply for temporary exemptions from certain federal rules while developing new technologies.

Cruz, who chairs the Senate Commerce Committee, described the proposal as a way to help U.S. firms stay competitive with China by lowering regulatory barriers. “A regulatory sandbox is not a free pass. People creating or using AI still have to follow the same laws as everyone else,” Cruz said during a subcommittee hearing.

Key Details

  • The bill would let federal agencies grant two-year exemptions to companies that apply, provided they outline safety and financial risks and how they would mitigate them.

  • The Office of Science and Technology Policy (OSTP) would be given authority to override agency denials of waivers.

  • The sandbox would apply only at the federal level — Cruz’s proposal does not preempt state-level AI regulations, despite pressure from the tech industry.

Industry Push and Opposition

Major AI developers including OpenAI, Google, and Meta have urged the Trump administration to reduce regulatory barriers. The White House OSTP has also begun seeking public input on which regulations hinder AI growth.

Consumer advocacy group Public Citizen sharply criticized Cruz’s bill, arguing it “treats Americans as test subjects” and warning against OSTP’s ability to override regulators. “The sob stories of AI companies being ‘held back’ by regulation are simply not true,” said J.B. Branch, the group’s Big Tech accountability advocate, pointing to record-high valuations of AI firms.

State-Level Rules

While Cruz’s bill avoids limiting state laws, AI regulation is already expanding at the state level:

  • California bans unauthorized political deepfakes and requires patient disclosure when AI is used in healthcare.

  • Colorado passed a law to curb AI discrimination in hiring, housing, banking, and other areas — its enforcement was pushed to mid-2026 after lobbying by the tech sector.

  • Several states have criminalized AI-generated explicit imagery without consent.

OSTP director Michael Kratsios told the committee that such state measures risk stifling innovation, suggesting Congress revisit preemption in the future.

The proposal is likely to fuel debate between those who see regulation as a barrier to U.S. innovation and those who warn of the risks of treating AI experimentation as a public trial.

Paramount Names Meta’s Dane Glasgow as Chief Product Officer

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Paramount announced Wednesday that Dane Glasgow, a senior executive from Meta, will join the company as chief product officer. In his new role, Glasgow will shape Paramount’s product strategy and vision, with a focus on digital platforms and AI-driven capabilities.

Glasgow will report directly to Paramount Skydance CEO David Ellison and collaborate closely with Cindy Holland, who leads the company’s direct-to-consumer division.

He brings extensive experience from across the tech industry, having served as VP of Product Management at Meta’s Facebook since 2021, and previously holding executive positions at Microsoft, eBay, and Google.

Paramount Skydance was created after the $8.4 billion merger of Paramount Global and Skydance Media in August, ushering in a wave of new leadership and strategic deals. Since then, the company has:

  • Secured a partnership with Activision Blizzard (owned by Microsoft) to produce a “Call of Duty” film adaptation,

  • Signed a three-year global distribution deal with Legendary Entertainment, beginning with a “Street Fighter” movie,

  • Committed $7.7 billion for the exclusive U.S. broadcast rights to the UFC for the next seven years.

With Glasgow’s appointment, Paramount is signaling its intent to push deeper into digital innovation while leveraging its expanded entertainment portfolio.

Amazon Developing Consumer AR Glasses to Compete With Meta

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Amazon is working on augmented reality (AR) glasses for consumers, according to a report from The Information. The project, internally codenamed “Jayhawk,” would mark Amazon’s first major step into the consumer AR market, setting up direct competition with Meta Platforms.

The AR glasses are expected to feature microphones, speakers, a camera, and a full-color display in one eye, with a planned rollout in late 2026 or early 2027. Amazon declined to comment on the report.

This initiative builds on Amazon’s earlier work with specialized AR eyewear for delivery drivers, revealed in a Reuters exclusive last year. That model, designed to provide turn-by-turn navigation on a small screen, is set for release as early as the second quarter of 2026, with an initial production of about 100,000 units.

Both the delivery glasses and the consumer version will share the same underlying display technology, but the consumer model will reportedly be sleeker and less bulky, offering a full-color experience tailored to everyday use.

The move positions Amazon directly against Meta, which has invested heavily in AR eyewear. Meta is expected to unveil a new version of its AR glasses at its Connect conference next week, building on the success of its Ray-Ban Meta line, developed with EssilorLuxottica’s Oakley, which has sold millions of units since its 2023 launch.

If Amazon delivers on its timeline, the consumer AR market could see a major clash between two of the world’s largest tech companies by 2027.