ai news 19th august 2025

AI News Wrap-Up: 19th August 2025

🇨🇳 China quietly suspends AI tools during key exam periods

China discreetly halted AI utilities - like image-based question solvers - during major national tests, including the gaokao. Firms such as Alibaba, Tencent, ByteDance, and Moonshot temporarily disabled these services without fanfare or public statements.
Analysts view it as a strategic safeguard against academic misuse - possibly a cue for the U.S. to consider similar preventative measures.
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💰 Morgan Stanley: AI could unlock up to $16 trillion in S&P 500 value

According to Morgan Stanley, broad AI integration might push the S&P 500 up by around 30% - translating to a potential $13–$16 trillion boost. They estimate roughly $920 billion in annual value could emerge via productivity, fresh revenue streams, and efficiency.
The firm also draws a line between “agentic AI” (enhances human roles) and “embodied AI” (robots taking over tasks).
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⚖️ Australia debates standalone AI law vs adapting current ones

Australian Treasurer Jim Chalmers said lawmakers are assessing whether AI requires new legislation or if tweaks to existing laws - on issues like copyright and data privacy - could suffice.
Meanwhile, NSW Labor is pushing to harness AI for faster housing approvals. So far, $20 million has been earmarked, with further investment on the table to increase efficiency.
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🧠 Nvidia building a scaled-down AI chip for China market

Nvidia has started work on the “B30A,” a slimmed-down iteration of its Blackwell B300 chip - reportedly offering about half the processing power. It’s designed specifically for Chinese buyers.
The B30A is expected to replace the current H20 model, with initial sample testing possibly launching next month - subject to regulatory approval.
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😬 Meta, Character.AI face probe over child-directed chatbot claims

Texas Attorney General Ken Paxton has initiated investigations into Meta and Character.AI, accusing them of misleading minors by offering chatbot interactions branded as “therapist” or “psychologist.”
Both platforms maintain that disclaimers are present, clarifying the tools offer fictional content - not licensed mental health advice.
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📉 Palantir drops sharply amid AI market skepticism

Palantir’s stock declined more than 9%, marking its fifth consecutive day in the red and placing it roughly 14% below its August 12 peak.
Analysts cite inflated AI expectations and long-term viability doubts, though Palantir still enjoys tailwinds from government partnerships and retail investors.
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