The massive budget bill signed into law by President Donald Trump on Independence Day didn’t include everything on Big Tech’s wishlist, but the industry’s largest players stand to gain significantly from several provisions in the One Big Beautiful Bill Act.
Technology
What Big Tech got out of Trump’s Big Beautiful Bill
The Republican-backed legislation is best known for its tax cuts on tips, deduction caps that could primarily benefit wealthy taxpayers, restriction on healthcare coverage for low-income and disabled Americans, cuts to renewable energy incentives, and tens of billions of dollars in funding to immigration enforcement. But it also includes restored tax deductions for research and development and other items that could benefit the tech industry, among other businesses.
In one high-profile fight, the tech industry failed to secure a moratorium on state AI laws, a proposal which had been supported by several trade groups and might have also affected a host of other state tech protections. But after months of lobbying from Congress to Mar-a-Lago, the industry will see slashed taxes and may receive new contracts from border enforcement funding, the Tech Oversight Project finds in a new report shared exclusively with The Verge. Some changes will likely benefit businesses of all sizes and sectors — while others may offer large companies in the tech industry the biggest benefits.
The budget bill essentially reverses a policy from Trump’s first term that limited how companies could write off research and development on their taxes. The 2017 Tax Cuts and Jobs Act (TCJA) forced companies to spread write-offs for domestic R&D costs across five years, rather than deducting them fully in the year they were incurred. Now, Congress is restoring the previous, more generous deduction setup, and small businesses can get retroactive tax write-offs for the last couple years when the changes — which took effect in 2022 — were in place.
In a recent report, Quartz linked the R&D deduction changes to the wave of layoffs across the industry, describing how it made it so companies could effectively only write off one-fifth of their R&D costs in the year they were incurred, rather than the full sum, making salaries for engineers and other high-skilled roles much more costly. The nonpartisan Institute on Taxation and Economic Policy (ITEP) found that in the three years in which the TCJA changes took effect, Alphabet, Amazon, Apple, Meta, and Tesla saw their tax bills rise a collective $75 billion as a result.
“The loss of full R&D expensing disincentivizes firms from significantly increasing their R&D investments”
So unsurprisingly, tech-backed groups like the Information Technology and Innovation Foundation (ITIF) and the Business Software Alliance (BSA) pushed to revert the rule. “The loss of full R&D expensing disincentivizes firms from significantly increasing their R&D investments because the cost of those investments has risen,” ITIF wrote in a blog post earlier this year.
Maintaining a lower corporate tax rate
Conversely, business groups successfully pleaded with lawmakers to keep a different change from the TCJA: a massive reduction in the corporate tax rate from 35 percent to 21 percent. In a letter to lawmakers last year, tech-backed Information Technology Industry Council (ITI) told lawmakers that the reduction had brought the US in line with peer countries, and provided US companies “a more level playing field against their international competitors,” which the nonprofit Tax Foundation found helped boost US investment. Democrats who have opposed the lower tax rates have framed it as a handout to corporate America.
Extending lower international tax rates
The new budget law also blocks a scheduled increase in the effective tax rates on things like the money companies make abroad based on US-based patents or other intangible assets.
These kinds of taxes — the base erosion and anti-abuse tax (BEAT), global intangible low-taxed income tax (GILTI), and the foreign-derived intangible income tax (FDII) — are generally meant to prevent shifty accounting practices like moving assets to a foreign subsidiary. Before the One Big Beautiful Bill Act passed, the effectively lowered rates through these three policies were set to expire at the end of 2025.
The tech industry argued protecting those low rates would keep US companies competitive with other countries, like France and the UK. “Several other nations already offer IP incentives,” ITI told lawmakers in an October letter. “It is essential that the FDII rate remains as low as possible.”
“The tax break disproportionately benefits large corporations with significant intellectual property portfolios”
But groups like the nonpartisan Financial Accountability and Corporate Transparency (FACT) Coalition and ITEP see lower rates for taxes like the FDII as a giveaway to the biggest players in the tech industry, which deal heavily in intangible assets like patents and trademarks.
“The tax break disproportionately benefits large corporations with significant intellectual property portfolios while doing little for smaller firms that lack similar assets,” ITEP wrote in a blog post last year, where it found that Google parent Alphabet reported over $11 billion in tax benefits from 2018 to 2023 as a result of the FDII.
Border protection funding could flow to tech
Alongside a significant budget increase for Customs and Border Protection (CBP) and other immigration-related funding, the law includes about $6 billion for border technologies, including surveillance systems. That money could flow to several large tech firms already engaged in the space.
Those include Peter Thiel-founded data company Palantir, which currently has a $30 million contract with Immigration and Customs Enforcement (ICE) to build “ImmigrationOS” to create “near real-time visibility into instances of self-deportation.” Thiel-backed Anduril also stands to gain if the agency expands infrastructure like the surveillance towers it already supplies to the government. MIT Technology Review reported in 2018 that Amazon Web Services hosted Department of Homeland Security (DHS) databases related to immigration, including a deep pool of biometric data.
Other tax-saving adjustments
Tech companies and other businesses will also benefit from changes in how business interest deductions are calculated, and a permanent extension of rules allowing companies to take a full deduction of certain equipment expenses. House Democrats have previously called this kind of tactic a “Tax Scam,” writing, “Two-thirds of the benefits go to corporations making over $250 million in revenue, and from 2018 through 2021, about two dozen of the largest corporations received roughly $50 billion in tax breaks through this provision.”
Some of the tax changes in the bill will benefit smaller firms and businesses across many different industries. But large tech companies are particularly well positioned to benefit from changes in how foreign profits on intellectual property are taxed and fuller R&D write-offs. After months of cozying up to the Trump administration with little to show for it, it looks like the largest players in the industry have finally notched some wins.
As if there weren’t already enough devices listening in on everything being said in your home, Prego, the pasta and pizza sauce brand, is releasing a device designed to record everything said around the dinner table for posterity. The Connection Keeper, which looks like an oversized pasta jar lid, was created in collaboration with StoryCorps, the nonprofit organization focused on preserving the stories of Americans in a collection housed at the Library of Congress’ American Folklife Center. There’s no AI, Wi-Fi, or Bluetooth, but you can optionally upload recordings to StoryCorps’ website to make them easier to share with family.
Prego says the goal of the device is to encourage families to make memories through conversation during dinner instead of staring at their phones — but only for a small number of families. The company is only planning to make less than 100 of them. The Connection Keeper will be available for purchase online starting on April 27th for $20 as part of a bundle that includes the device, a jar of Prego sauce, spaghetti noodles, and a deck of cards featuring conversation prompts and ideas.
Using the device is as easy as plopping the Connection Keeper down in the middle of everyone at the table and pressing one button to start recording. Using a pair of microphones, it captures CD-quality audio to a 16GB microSD card for up to eight hours when fully charged.
When dinner’s over, the recordings can be transferred to a computer over USB-C and then uploaded to a dedicated microsite created by StoryCorps where they’re preserved and accessible only by the uploader, unless they choose to share them with other StoryCorps users or the general public. You even have the option to archive them within the Library of Congress, which makes them public automatically, so hopefully your family talks about more than just stealing brainrots.
The recordings can be accessed on a smartphone through the StoryCorps app, but Prego intentionally left phones out of the rest of the process to discourage their use at the table. It’s also why the Connection Keeper lacks a screen. The goal was to minimize interactions with the device so family members instead focused on talking with each other.
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BMW Group has spent years testing automation, but this latest move feels different. Instead of robotic arms locked in cages, the company is now using humanoid robots that move through factories more like people. After a successful pilot in Spartanburg, South Carolina, BMW is bringing that same idea into its Leipzig, Germany, factory, where it is testing robots in real production environments. This time, it is partnering with Hexagon Robotics to introduce a new generation of AI-powered machines. Unlike many robot demos you see online, this one is already being tested inside a real production environment.
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CHINESE ROBOT BREAKS HUMAN WORLD RECORD IN BEIJING HALF-MARATHON
BMW’s new AI-driven robots are now operating inside active factories, marking a shift from traditional automation to flexible, human-like systems. (Christof Rührmair/picture alliance via Getty Images)
How BMW’s humanoid robot pilot built over 30,000 vehicles
BMW’s earlier pilot used Figure 02 humanoid robots for a very specific task. They handled the precise positioning of sheet metal for welding on the BMW X3 production line. That task may seem small, but it plays a key role in keeping production moving smoothly. Precision work like this can easily slow things down or create bottlenecks. According to BMW, those robots helped contribute to building more than 30,000 vehicles. Because of that success, the company now feels confident about expanding the concept. Instead of limiting testing to one plant, BMW is moving forward with its iFACTORY initiative in Leipzig, where EV production is already a major focus.
BMW’s new AI humanoid robots for EV factories
The new robots, called AEON, come from Hexagon Robotics. They are designed to work inside active factory environments without constant human direction. They rely on AI-based motion control, which helps them move through complex spaces. At the same time, built-in sensors allow them to understand their surroundings in real time. Because of that, they can adjust their actions on the fly instead of following fixed instructions. Hexagon refers to this as “Physical AI.” In simple terms, the robot can make decisions based on what it sees around it. As a result, the robot does not stop when something unexpected happens. Instead, it adapts and keeps working. That marks a clear shift from traditional factory automation.
Why BMW is investing in humanoid robots now
BMW executives have made it clear that this is not about replacing people overnight. Instead, the goal is to test what actually works in real production environments. Michael Nikolaides, who oversees BMW’s production network, says these pilot programs help the company refine how AI-powered robots learn on the job. He goes on to point to a broader vision, saying: “Digitalization improves the competitiveness of our production, here in Europe and worldwide. The symbiosis of engineering expertise and artificial intelligence opens up entirely new possibilities in production.” There is also a practical reason for the humanoid design. Factories are already built for human workers. Because of that, a robot that can use the same spaces and tools is much easier to integrate than one that requires a complete redesign.
HUMANOID ROBOTS HIT MASS PRODUCTION IN CHINA
After a successful U.S. pilot, BMW is deploying humanoid robots in Leipzig to improve efficiency and adaptability in electric vehicle manufacturing. (Christof Rührmair/picture alliance via Getty Images)
How humanoid robots could transform factory work
For years, humanoid robots felt more like something you saw in those social media demo videos than something you would trust on a real factory floor. Yes, they looked impressive, but they struggled in real environments. That is starting to change. Factories are still unpredictable. Parts do not always arrive in the exact same position. Workers move around constantly, and tools and materials shift throughout the day. Because of this, traditional robots often struggle since they rely on tightly controlled conditions. AI-powered humanoid robots can handle that kind of variability. They move around people and equipment without stopping. They adjust when parts are slightly off, and they work in spaces built for human workers. That level of flexibility is what sets this new wave of AI-powered robotics apart from earlier forms of automation.
What this means to you
Even if you never step inside a factory, this shift still matters. For one, it could change how cars are built, whether they are electric or gas. When production speeds up, costs can come down over time, which could affect what you pay for your next vehicle. At the same time, factory jobs are likely to change. Some repetitive or physically demanding work may move to robots. In many cases, that means people shift into roles focused on oversight, maintenance or more skilled tasks. Step back for a second, and you can see this is a sign of where AI is headed next. It is no longer limited to apps on your phone or software on your computer. Now, it is starting to show up in the physical world in ways you can actually see and interact with.
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HOME ROBOT COOKS, CLEANS AND ORGANIZES YOUR LIFE
BMW is expanding its humanoid robot program into a German EV factory, testing AI-powered machines designed to work alongside humans in real production environments. (Christof Rührmair/picture alliance via Getty Images)
Kurt’s key takeaways
BMW is not the only company testing humanoid robots, but it is one of the first to bring them into real production environments. That is a big shift from the testing phase most of us are used to seeing. The fact that these robots are already helping build tens of thousands of vehicles shows that this is moving beyond early trials. It is starting to become part of how factories actually run. Where this goes next is still an open question. If the technology keeps improving, you could see more of these robots show up in factories and warehouses over time.
So here is the bigger question. How do you feel about humanoid robots working alongside people in factories? Would you trust them to help build the car you drive? Let us know by writing to us at Cyberguy.com
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Today’s launch of AST SpaceMobile’s BlueBird 7 satellite aboard Blue Origin’s reusable New Glenn rocket was a partial success. The New Glenn touched down on its landing pad without incident, making it the second launch and landing for the first stage booster, and officially giving Jeff Bezos a reusable launch vehicle. Unfortunately for AST SpaceMobile, the mission was less successful. Its cell-tower-in-space was delivered to a lower orbit than expected by the second stage of the launch vehicle, rendering it functionally useless.
While the satellite separated from the launch vehicle and powered on, the altitude is too low to sustain operations with its on-board thruster technology and will de-orbited.
Bezos, for his part, posted a video of the landing on X without comment.
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