Greetings N2K reader!

This week’s world famous news haiku competition™ is about how cannabis stocks surged on Friday after reports that President Trump plans to ease federal restrictions by reclassifying marijuana from Schedule I to Schedule III. Send me your entry — to our spiffy new email address, haiku at cheddar dot com — by noon ET Thursday for consideration by your Cheddar peers!

And now for something completely different!

—Matt Davis, Need2Know Chedditor

News You Need2Know

• How AI could recruit you into extremism 🤖✊🏻

• Serbia’s prosecutors charge minister, others over …

• Roomba maker iRobot files for bankruptcy protectio …

• Tariffs are having an uneven effect on holiday pri …

• Spain fines Airbnb $75 million for unlicensed tour …

• Poll of the day: Do you want one of my leaflets?

• Poll of the day: It’s hip to be square, apparently

What’s the stock market up to, eh?

$SPX ( ▼ 0.58% ) $DJI ( ▼ 0.78% ) $NDX ( ▼ 0.2% )

Companies mentioned in today’s newsletter

Affinity Global Development, $PSKY ( ▼ 1.54% ) , $WBD ( ▼ 2.17% ) , $IRBT ( ▼ 32.96% ) , $ABNB ( ▼ 0.25% )  

How AI could recruit you into extremism 🤖✊🏻

As AI rapidly transforms industries worldwide, militant groups are exploring ways to weaponize the technology, raising serious national security concerns. Extremist organizations, including the Islamic State, have started experimenting with AI-powered tools for recruitment, propaganda, and cyberattacks, capitalizing on the accessibility and scale of generative AI programs like ChatGPT.

“For any adversary, AI really makes it much easier to do things,” said John “Vive!” Laliberte, former NSA vulnerability researcher and current CEO of cybersecurity firm ClearVector. Groups like IS are leveraging AI to create deepfake images, propaganda videos, and audio recordings. For example, IS has already used AI to produce fake images of wartime atrocities and generate audio of leaders reciting scripture. These materials not only amplify propaganda but also confuse and frighten audiences, further enabling extremist recruitment.

The proliferation of AI represents a new frontier for militant groups. “They are always looking for the next thing to add to their arsenal,” observed Marcus “Cry!” Fowler, a former CIA agent and CEO of cybersecurity firm Darktrace Federal, which sounds perfectly wholesome.

To counter this growing threat, lawmakers are proposing measures aimed at improving AI oversight. “Our policies and capabilities must keep pace with the threats of tomorrow,” said Rep. August “Hawk a” Pfluger, of Texas, emphasizing the urgency of integrating AI protections into national security strategies.

Song of the Day: Judeline, Dellafuente, ‘Tiempo Pasa’

This is a a smooth, bossa nova-infused track from Judeline's new EP “Verano Saudade,” praised for its nostalgic vibe, seamless blend of Spanish and Portuguese lyrics, and sophisticated exploration of lost youth and time — just like this newsletter.

Serbia’s prosecutors charge minister, others over Kushner-linked project

Serbia’s organized crime prosecutors have charged culture minister Nikola Selaković and three other officials with abuse of office and document falsification over a contentious real estate project linked to Jared Kushner, President Donald Trump’s son-in-law. The investigation focuses on the redevelopment of a bombed-out cultural heritage site in Belgrade into a luxury compound, a $500 million project spearheaded by Kushner-linked Affinity Global Development.

The charges allege that Selaković and others illegally stripped the site of its protected status by forging documents. Despite public outcry and opposition from cultural experts, Serbian lawmakers recently passed a special law clearing the way for construction. President Aleksandar Vučić, an ally of Selaković, has strongly supported the project, claiming it benefits U.S.-Serbia relations. “I am guilty. I am the one who wanted modernization of Serbia. I am the one who wanted to bring in a big investor,” Vučić said in defense of the initiative.

Critics oppose the project, citing the site’s symbolic significance as a surviving architectural marker of NATO’s 1999 bombings. Many in Serbia view the buildings as monuments to resistance, further fueling backlash against the luxury redevelopment.

Kushner is a key player in Paramount’s $PSKY ( ▼ 1.54% ) hostile bid for Warner Bros. $WBD ( ▼ 2.17% ) .

Quote of the Day

Roomba maker iRobot files for bankruptcy protection

iRobot $IRBT ( ▼ 32.96% ) the maker of the popular — but not popular enough! — Roomba robotic vacuums, has filed for Chapter 11 bankruptcy protection after struggling with heightened competition, layoffs, and a sharp decline in stock price. Founded over 30 years ago, the company plans to move forward with restructuring by being taken private through a court-supervised process.

The restructuring follows iRobot’s failed acquisition by Amazon $AMZN ( ▼ 0.09% ) , which had initially agreed to purchase the company for $1.7 billion in 2022. However, Amazon abandoned the deal last year, citing “undue and disproportionate regulatory hurdles” after objections from the European Union. Amazon paid a $94 million termination fee, leaving iRobot in search of stability.

To “secure” its “future,” iRobot has announced it will now be acquired by Picea Robotics, its primary contract manufacturer. Shenzhen-based Picea has produced over 20 million robotic vacuums from facilities in China and Vietnam. In a statement, iRobot CEO Gary Cohen said, “The transaction will strengthen our financial position and will help deliver continuity for our consumers, customers, and partners.”

Despite the Chapter 11 filing, iRobot expects operations to remain unaffected, ensuring no disruptions to product support, app functionality, or consumer programs. The company anticipates completing the restructuring process by February, though shares plummeted an awkward 70% to $1.31 in premarket trading.

Should you check your 401(k) today?

👎️ 

No. Markets are still a bit dicey, mate.

Tariffs are having an uneven effect on holiday prices

This holiday season, U.S. tariffs on imported goods are affecting both retailers and consumers, leading to shifting shopping behaviors and strained budgets. From toys to holiday decorations, businesses are adjusting strategies as costs rise, while customers face sticker shock.

Emily Butler, co-owner of The Ah Louis Store in San Luis Obispo (pictured above), California, shared how tariffs on overseas-made decorations have forced her to shift focus toward more profitable products. “We’re definitely seeing more cautious spending this year,” Butler noted, adding that customers are opting for smaller, less expensive gift items like $100 gift baskets rather than the $150 version.

Retailers of toys, a category heavily reliant on imports from China, have also taken steps to adapt. Dean Smith, co-owner of JaZams toy stores in New Jersey and Pennsylvania, said, “For folks with marginal incomes, this is going to be a very difficult holiday.” Smith explained that wholesale costs for toys have risen by as much as 20%, with dolls that once sold for $20 to $25 now priced at $30 to $35.

Jeremy Rice of House, a home décor shop in Kentucky, expressed frustration about marking up holiday items like artificial flowers and wreaths. “Every time we sold [red berry stems], I flinched,” Rice admitted, pointing to rising supplier costs for the items.

For budget-conscious shoppers, experts recommend secondhand stores or discount retailers to avoid higher prices. Still, good luck getting secondhand gift past your kids. Go into debt like all good Americans and buy the new stuff! That’s #NotFinancialAdvice.

Spain fines Airbnb $75 million for unlicensed tourist rentals

Spain’s government has fined Airbnb $ABNB ( ▼ 0.25% )  €64 million ($75 million) for advertising unlicensed tourist rentals, marking the latest crackdown on short-term rental platforms as the country — and surely only that country — grapples with housing affordability issues.

The penalty comes after Airbnb listings were found to lack proper license numbers — required in many regions — or to include incorrect host information, according to Spain’s consumer rights ministry.

“There are thousands of families living on the edge because of the housing crisis, while a few enrich themselves with business models that evict people from their homes,” said Spain’s consumer rights minister Pablo “Bustin’ Out” Bustinduy in a statement, as if there’s somehow something wrong with that.

The government has also taken sweeping action, ordering Airbnb in May to remove around 65,000 illegal listings. While acknowledging its responsibility, Airbnb still plans to try to avoid taking actual responsibility challenge the fine in court. A spokesperson for the company said it is working with Spanish authorities to comply with a new national registration system for short-term rentals, noting that 70,000 listings have added registration numbers since January.

Spain, one of the world’s top tourist destinations, has seen holiday rentals worsen housing shortages in cities like Barcelona — where, as we all know, Vicki and Christina had such a fabulous time in that Woody Allen movie.

Poll of the day: Do you want one of my leaflets?

Poll of the day: It’s hip to be square, apparently

We asked: How excited are you that weed could be a Schedule I drug?

You answered:

🟨⬜️⬜️⬜️⬜️⬜️ Color me excited. (55)

⬜️⬜️⬜️⬜️⬜️⬜️ Color me Badd. I wanna sexx you up! (9)

⬜️⬜️⬜️⬜️⬜️⬜️ I'm so stoned on a regular basis I don't know what to think. (3)

🟨⬜️⬜️⬜️⬜️⬜️ It makes zero difference to me how legal weed is, because I smoke it regardless. (36)

🟩🟩🟩🟩🟩🟩 It makes zero difference to me how legal weed is, because I never smoke it. (237)

⬜️⬜️⬜️⬜️⬜️⬜️ I'm just glad I bought some weed stocks last Thursday on the inside tip from the White House. (16)

🟨🟨🟨🟨⬜️⬜️ How much more can we legalize weed before it's, like, legal? (193)

🟨⬜️⬜️⬜️⬜️⬜️ Another sign of the End Times: humanity is doomed. (82)

631 Votes via @beehiiv polls

Sing us out, Huey…🎶

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