Major Tech Shift: China Regulates Human-Like AI & Nvidia Drops Intel 18A | December 27, 2025

Daily AI Blog

📋 Quick Takeaways

  • China drafts landmark regulations for “human-like” AI, requiring labels and addiction prevention measures.
  • Nvidia halts testing of Intel’s 18A node, dealing a major blow to Intel’s foundry comeback strategy.
  • IREN confirms $9.7 billion AI cloud deal with Microsoft, pivoting from crypto to high-performance computing.
  • Peking University unveils analog AI chip claiming 1,000x efficiency gains over traditional GPUs.
  • Waymo begins testing Google Gemini models to enable verbal conversations in robotaxis.
  • Andrew Ng predicts AI won’t replace humans anytime soon, despite warning of a short-term valuation bubble.
  • Teachers flock to “Diffit”, an AI tool for differentiating curriculum, signaling mass classroom adoption.

⚖️ AI Regulation & Policy

China Issues Draft Rules to Regulate Human-Like AI Interactions

Regulatory Milestone: The Cyberspace Administration of China released draft regulations on December 27 targeting AI services that simulate human personalities or engage in emotional interactions.

Key Provisions:

  • Mandatory Labeling: Providers must clearly distinguish AI-generated content from human interaction.
  • Addiction Prevention: strict measures required to prevent users from becoming psychologically dependent on AI companions.
  • Provider Liability: Platforms assume full responsibility for psychological risks and data privacy violations.

Global Context: This represents one of the world’s first comprehensive attempts to regulate the psychological and social impact of anthropomorphic AI, setting a potential precedent for global governance.

Source: Bloomberg | Reuters | US News

💻 Hardware & Industry Shifts

Nvidia Reportedly Halts Intel 18A Manufacturing Tests

Foundry Setback: Reports confirmed on December 26 that Nvidia has stopped testing Intel’s next-generation “18A” chip manufacturing process, opting not to proceed with mass production at this stage.

Industry Impact:

  • Blow to Intel: The 18A process was the cornerstone of Intel’s “IDM 2.0” strategy to compete with TSMC.
  • TSMC Dominance: Nvidia will likely continue its exclusive reliance on TSMC for its cutting-edge AI accelerators.
  • Market Reaction: The decision raises fresh concerns about Intel’s ability to capture top-tier foundry customers despite massive R&D investments.

Source: Yahoo Finance | Gigazine | 24/7 Wall St

☁️ AI Infrastructure & Cloud

IREN Confirms $9.7 Billion Microsoft Cloud Deal

Massive Scale-Up: Data center operator IREN (formerly Iris Energy) confirmed a colossal $9.7 billion GPU cloud contract with Microsoft on December 26, solidifying its pivot from Bitcoin mining to AI infrastructure.

Deal Details:

  • Includes a 20% prepayment to fund expansion.
  • Linked to a $5.8 billion hardware procurement agreement with Dell.
  • Focuses on hosting high-performance computing workloads for Microsoft’s AI innovations.

Strategic Pivot: The deal underscores the insatiable demand for power-secure data centers capable of hosting massive clusters of H100 and Blackwell GPUs.

Source: TS2 Tech

🔬 Hardware Innovation

Peking University Unveils Analog Matrix Computing Chip

Efficiency Breakthrough: Science and Technology Daily’s “Top 10 News of 2025” highlighted a new analog matrix computing chip developed by Peking University researchers.

Technical Claims:

  • 1,000x Efficiency: Reportedly outperforms traditional GPUs by three orders of magnitude in energy efficiency for specific tasks.
  • Throughput: Offers significantly higher data throughput for scientific calculations.
  • Architecture: Utilizes analog computing principles to bypass the bottlenecks of digital von Neumann architectures.

Source: PR Newswire

🚗 Autonomous AI Applications

Waymo Tests Google Gemini AI for In-Car Conversations

Product Integration: Waymo has begun actively testing Google’s Gemini AI models inside its robotaxis, aiming to transform the passenger experience through natural verbal interaction.

Features:

  • Conversational Assistant: Passengers can converse naturally with the vehicle about routes, destinations, or general topics.
  • System Prompts: Leaked code reveals prompts designed to give the AI a helpful, driver-like persona.
  • Ecosystem Synergy: Demonstrates the deepening integration between Alphabet’s autonomous driving and generative AI divisions.

Source: NeuralBuddies

🗣️ Expert Insight

Andrew Ng: AI Won’t Replace Humans Soon, But Demand is Shiftng

Voice of Reason: In a December 27 interview, renowned AI pioneer Andrew Ng tempered fears of mass displacement while remaining bullish on AI utility.

Key Insights:

  • “Limited” Capabilities: Current AI is still too limited to fully replace complex human roles.
  • Inference Growth: Predicted a massive surge in “inference” workloads (using trained models) compared to training.
  • Bubble Warning: Acknowledged a likely financial bubble in AI valuations, but distinguished it from the genuine long-term value of the technology.

Source: NBC News

🎓 Education & Society

Teachers Turn to “Diffit” for AI-Powered Differentiation

Classroom Adoption: A surge of educators are adopting Diffit, an AI tool specifically designed to instantly differentiate reading materials and generate curriculum resources.

Trend Analysis:

  • Moves beyond “writing essays” to instructional design.
  • allows teachers to modify a single text for multiple reading levels instantly.
  • Signals a shift from banning AI to integrating it as a productivity essential in schools.

Source: Post-Gazette

📊 Market Impact Analysis

The events of late December 2025 highlight a distinct maturation phase in the AI cycle:

  1. Regulatory Fences: China’s move to regulate “human-like” AI suggests governments are moving from broad safety concerns to specific psychological and societal risks.
  2. Hardware Reality Check: Nvidia’s rejection of Intel’s 18A node reinforces TSMC’s monopoly and the immense difficulty of catching up in semiconductor manufacturing.
  3. Infrastructure Capitalization: The $9.7B IREN/Microsoft deal proves that the “infrastructure build-out” phase is still accelerating, with capital flowing heavily into power and hosting.