TNB Tech Minute: ServiceNow to Acquire Cybersecurity Startup Armis

Summary

WSJ Tech News Briefing: Tech Minute – ServiceNow to Acquire Armis

Host: Julie Chang
Date: December 23, 2025
Theme: Tech sector highlights, with a focus on ServiceNow’s acquisition of cybersecurity startup Armis, key automotive trends, and new FCC regulations on drones.

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Overview

This episode of the WSJ Tech News Briefing centers on ServiceNow’s landmark $7.75 billion acquisition of cybersecurity startup Armis, exploring its potential impact on the growing AI security sector. The episode also provides updates on Chinese automaker BYD’s explosive European sales, and details the FCC’s sweeping restrictions on drones and communications equipment from China. Narrated in a concise “tech minute” style by Julie Chang, the newscast delivers essential industry developments with rapid-fire clarity.

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Key Discussion Points & Insights

1. ServiceNow’s Acquisition of Armis

• Deal Details:

  • ServiceNow is acquiring Armis, a cybersecurity company, for approximately $7.75 billion in cash.
  • The deal is scheduled to close in the second half of next year.

• Strategic Purpose:

  • The acquisition is designed to tap into the booming demand for AI security.
  • ServiceNow states this will "triple its market opportunity for security and risk solutions."
  • The combined platform aims to create a comprehensive security “exposure and operations stack,” merging threat intelligence with automated responses.

• Industry Impact:

  • The deal signals increased awareness of the need for end-to-end security as AI adoption intensifies.
  • Emphasis is on integrating security directly with operations to automate remediation of threats, elevating the role of AI in defense strategies.

  "The move aims to take advantage of growing demand for AI security."
  (Julie Chang, 00:26)

  "The deal aims to create an end to end security exposure and operations stack, connecting threat intelligence with automated remediation."
  (Julie Chang, 00:35)

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2. BYD’s European Surge

• Sales Growth:

  • BYD posted more than a threefold increase in European sales in November, with new registrations surpassing 16,000 units (up from 4,800 a year earlier).
  • This pace outstrips both domestic (e.g., Volkswagen) and US rivals (e.g., Tesla) in monthly sales growth, though not in total vehicles sold.

• Market Shift:

  • Signals shifting dynamics in the fiercely competitive European EV market, spotlighting the rise of Chinese automakers.

  "BYD has been outpacing both domestic carmakers like Volkswagen and US rivals such as Elon Musk's Tesla in the continent in terms of monthly sales growth, but not when it comes to the total number of vehicles sold."
  (Julie Chang, 01:09)

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3. FCC Drone and Equipment Ban

• Regulatory Action:

  • The FCC has banned all drones and critical components made in foreign countries, especially from Chinese firms DJI and Autel Robotics, as well as their communications and video surveillance equipment.
  • The ban is forward-looking and does not affect products already in stores or in use.

• Rationale & Response:

  • Q: National security risks highlighted by a White House-led group.
  • DJI, the largest player in the US drone market, expressed disappointment, asserting its drones are secure.
  • US drone pilots voiced strong opposition, arguing there are no viable domestic alternatives.

  "The FCC said that a White House led group informed the commission on Sunday that drones from foreign countries posed unacceptable risks. DJI said it's disappointed in the decision and that its drones are secure."
  (Julie Chang, 01:40)

  "The ban has sparked outrage among nearly half a million certified American commercial drone pilots who rely on China made drones for which they say there is no Western replacement."
  (Julie Chang, 01:54)

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Notable Quotes & Memorable Moments

• On the rising demands of AI:

  "Our research shows that AI data center power could rise by 160% by 2030. And if you just put that within the US context... the need to do that at a rate of 3 to 5% is what's going to be needed, and that is just an absolutely massive undertaking given we haven't done it in the last 20 years."
  (Veren Marja, McKinsey, 02:21)

• On operational challenges for AI infrastructure:

  "Companies that will be successful will treat AI scale as both a technology challenge and a system level challenge. You're going to have to invest in efficiency across compute, thermal, networking, and power."
  (Veren Marja, McKinsey, 02:43)

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Timeline of Key Segments

• 00:26 – ServiceNow–Armis acquisition announcement and goals
• 01:09 – BYD’s European sales surge and implications
• 01:31 – FCC ban on Chinese drone hardware and industry backlash
• 02:21 – (Extra) McKinsey on the energy demands of AI

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Summary

This episode succinctly captures a major cybersecurity acquisition poised to reshape the security landscape, the rapid ascent of a Chinese automaker on European soil, and a controversial federal ban rattling the US drone industry. Sprinkled with expert insight, the show highlights how AI's evolution is not just about smarter algorithms but the robust infrastructure beneath—signaling a future where both operational scale and regulatory scrutiny will shape outcomes in tech.

Transcript

[A]

The next frontier in artificial intelligence isn't just better models, it's better infrastructure. Join McKinsey at the break to hear why tomorrow's AI winners aren't focused only on the next big algorithms, but also on what's powering them. Here's your morning TNB Tech minute for Tuesday, December 23rd. I'm Julie Chang for the Wall Street Journal. Artificial intelligence software company ServiceNow is acquiring cybersecurity startup Armis for about 7.75 billion doll cash. The move aims to take advantage of growing demand for AI security. ServiceNow said the acquisition would triple its market opportunity for security and risk solutions. The deal aims to create an end to end security exposure and operations stack, connecting threat intelligence with automated remediation. The transaction is expected to close in the second half of next year. Chinese auto giant BYD posted a more than threefold jump in European sales last month, continuing to surpass both domestic and foreign rivals. New car registrations for BYD models surged to more than 16,000 units in November from about 4,800 a year earlier. That's according to the European Automobile Manufacturers Association. BYD has been outpacing both domestic carmakers like Volkswagen and US Rivals such as Elon Musk's Tesla in the continent in terms of monthly sales growth, but not when it comes to the total number of vehicles sold. And the Federal Communications Commission has banned all drones and critical components made in a foreign country, as well as all communications and video surveillance equipment from major Chinese drone manufacturers, DJI Technology and Autel Robotics. Yesterday's decision doesn't cover models currently in stores or already purchased. The FCC said that a White House led group informed the commission on Sunday that drones from foreign countries posed unacceptable risks. DJI said it's disappointed in the decision and that its drones are secure. AUTEL didn't respond to a request for comment. The ban has sparked outrage among nearly half a million certified American commercial drone pilots who rely on China made drones for which they say there is no Western replacement. And that's your TNB Tech Minute. We'll be back this afternoon with more. The energy demands of AI are staggering and they're only growing. Here's Veren Marja of McKinsey again on what it will take to power the AI revolution. Our research shows that AI data center power could rise by 160% by 2030. And if you just put that within the US context, the US has increased grid capacity by 1 to 2% and the need to do that at a rate of 3 to 5% is what's going to be needed, and that is just an absolutely massive undertaking given we haven't done it in the last 20 years. Companies that will be successful will treat AI scale as both a technology challenge and a system level challenge. You're going to have to invest in efficiency across compute, thermal, networking and power. And CES is a fantastic forum. Companies can get together and really try and solve some of these toughest challenges. Discover how McKinsey is redefining AI transformation at CES and driving innovation and impact across [e-mail] CES custom content from WSJ is a unit of the Wall Street Journal Advertising Department. The Wall Street Journal News Organization was not involved in the creation of this content.