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Nvidia's largest Southeast Asia partner faces probe over alleged chip smuggling to China

Megaspeed International, formerly a Chinese gaming company, has become Nvidia's biggest Southeast Asian customer in under three years. Now the Singapore-based firm faces US government investigation over potential chip smuggling to China, exposing critical gaps in export controls designed to limit China's AI capabilities. The case highlights how complex global AI supply chains make enforcement increasingly difficult.

2 Sources

Yesterday

Medicare launches AI review tool for prior authorization in six states starting January 1

Medicare is rolling out AI-powered prior authorization reviews for 17 outpatient services across six states starting January 1, 2026. The Wasteful and Inappropriate Service Reduction (WISeR) Model aims to curb fraud and wasteful spending but has sparked concern among physicians over administrative burdens, potential care delays, and unclear implementation guidance with just days before launch.

2 Sources

John Carreyrou Sues Six AI Companies Over Unauthorized Use of Copyrighted Books for Training

New York Times reporter John Carreyrou and five other authors filed a copyright lawsuit against Google, OpenAI, Meta, xAI, Anthropic, and Perplexity, accusing them of training AI models on pirated books. Unlike previous cases, the authors rejected class action settlements, arguing they undervalue intellectual property rights and allow AI companies to resolve claims at bargain-basement rates.

6 Sources

22 Dec 2025

Nvidia prepares to ship up to 80,000 H200 AI chips to China as political hurdles loom

Nvidia plans to deliver up to 80,000 H200 AI chips to China before the Lunar New Year, marking the first legal export of this caliber since 2022. The shipments follow Donald Trump's policy reversal allowing sales with a 25% revenue share to the US Treasury. But Beijing hasn't approved purchases yet, and bipartisan opposition in Washington threatens the deal as China weighs the impact on its domestic chipmaking industry.

9 Sources

21 Dec 2025

Georgia Power wins approval for massive 50% capacity expansion to fuel AI data center boom

Georgia regulators have approved a 50% power capacity increase for Georgia Power, one of the largest U.S. buildouts aimed at meeting AI-driven electricity demand. The $16.3 billion construction plan will add 10,000 megawatts of capacity, with 80% designated for data centers. Critics warn existing ratepayers could bear the financial burden if projected demand fails to materialize.

2 Sources

Doctors warn AI companions threaten mental health as kids turn to chatbots for friendship

Physicians from Harvard and Baylor published a paper in the New England Journal of Medicine warning that AI companions designed to simulate emotional support create dangerous conditions for mental health. Children are using AI for companionship 42% of the time, with some conversations turning violent or sexual, according to a new report by Aura.

3 Sources

20 Dec 2025

New York Governor Hochul signs RAISE Act as state AI safety laws face federal challenge

Governor Kathy Hochul signed the RAISE Act, making New York the second U.S. state to enact major AI safety legislation. The law requires large AI developers to publish safety protocols and report incidents within 72 hours, with penalties up to $1 million for violations. The move sets up a potential legal clash with President Trump's recent executive order aimed at blocking state AI regulation.

4 Sources

18 Dec 2025

Michigan approves 1.4 gigawatts for OpenAI's Stargate data center as residents protest fast-track

The Michigan Public Service Commission approved DTE Energy's request to deliver 1.4 gigawatts of power to OpenAI and Oracle's $7 billion Stargate data center in Saline Township. The 3-0 vote used an ex parte motion that bypassed public hearings, leaving residents furious about being shut out of the process despite concerns over electricity prices, environmental impact, and transparency.

5 Sources

Actors vote overwhelmingly to refuse digital scanning as AI protections battle intensifies

UK performing arts union Equity announced that 99% of over 7,000 actors voted to refuse digital scanning on set, marking the first major industrial action ballot in a generation. The move targets unauthorized use of likeness by AI and follows similar concerns that drove the Hollywood writers' strike in 2023.

2 Sources

Adobe faces class-action lawsuit over alleged use of pirated books in AI training

Oregon author Elizabeth Lyon filed a proposed class-action lawsuit against Adobe, claiming the company used pirated versions of her books and thousands of others to train its SlimLM AI model. The case centers on the Books3 dataset, which contains 191,000 copyrighted works allegedly incorporated without permission or compensation through the SlimPajama training dataset.

6 Sources

Instacart Ends AI Pricing Tests After FTC Investigation and Regulatory Backlash

Instacart has terminated its AI-powered pricing tests that showed different prices for the same items to different customers. The decision follows an FTC investigation, a Consumer Reports study revealing up to 23% price variations, and pressure from lawmakers including Sen. Chuck Schumer. The company also settled separate allegations for $60 million over deceptive business practices.

19 Sources

17 Dec 2025

Tesla faces 30-day California sales ban over deceptive Autopilot and Full Self-Driving claims

California regulators threaten to suspend Tesla's sales license for 30 days after a judge ruled the company engaged in deceptive marketing practices with its Autopilot and Full Self-Driving terminology. Tesla has 90 days to clarify the limitations of its self-driving technology or face the suspension early next year.

6 Sources

Bernie Sanders demands moratorium on AI data centers to protect workers and democracy

Senator Bernie Sanders is calling for a halt on AI data center construction to address concerns about job displacement, environmental impact, and wealth inequality. The move puts Democrats in direct opposition to the Trump administration's push for rapid AI infrastructure expansion. Elizabeth Warren and other senators are investigating how tech companies' energy-guzzling facilities affect residential utility costs.

10 Sources

House advances SPEED Act to fast-track permits for AI data centers and chip manufacturing

The House cleared a critical procedural vote for the SPEED Act, a bipartisan bill backed by OpenAI, Meta, and Microsoft to accelerate federal permits for AI infrastructure. The legislation would shorten environmental review timelines and limit legal challenges to 150 days, but faces internal Republican opposition over an amendment restricting presidential authority on energy permits.

2 Sources

16 Dec 2025

Senators probe tech giants as AI data centers drive electricity costs up, communities fight back

Three Democratic senators are investigating whether AI-driven data centers are raising residential electricity bills, citing increases up to 267% in some regions. Meanwhile, grassroots opposition has blocked or delayed $98 billion worth of data center projects in 2025 alone. Tech giants including Amazon, Google, Microsoft, and Meta face scrutiny over confidential utility contracts and broken promises to shield consumers from infrastructure costs.

7 Sources

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