A New York Times report says Israel turned Iran's former hardline president into an asset, fueling a claim that Israel is running a paid propaganda campaign to sway young Americans — bad for Israel's image and for US media trust.

• The Times reports Mahmoud Ahmadinejad, who once called for wiping Israel off the map, secretly worked with Israeli intelligence and was set to be installed as a pro-Israel puppet leader.
• The plan collapsed when an Israeli air strike hit his compound, agents whisked him to a safe house, and he is now reportedly under house arrest in Iran.
• Israel is paying a Trump-linked firm $1.5 million a month to push pro-Israel content to Gen Z and to lean on AI companies to soften how their chatbots describe Israel.
• Influencers were reportedly paid thousands per post, with an admitted aim of stopping young conservatives from turning against Israel.
• Israel's yearly propaganda budget runs into the hundreds of millions and is set to grow, but the effort is seen as backfiring as younger, online audiences push back.

Outlook: Expect more scrutiny of foreign influence campaigns and paid influencers, with Israel likely spending even more as its messaging keeps losing ground with young Americans.