California's New AI Laws, OpenAI's Erotic ChatGPT, and Nordic Fusion Reactor Plans - AI Policy Brief #40

Hi there,

Welcome to this week's edition of the AI Policy Brief, your go-to source for the latest developments in AI regulations, safety standards, and government policies worldwide. This week, we're diving into significant international policy updates, including the upcoming World Internet Conference 2025, which will focus on AI and governance. In China, the number of generative AI users has doubled to 515 million, reflecting the rapid adoption of AI technologies in the region. Meanwhile, Latvijas Banka has taken a proactive step by adopting AI regulation for the finance sector, ensuring compliance and safety in financial operations.

On the regulatory front, the Dutch government has taken control of Nexperia, and California has enacted new AI regulation laws. In a notable move, British Columbia has limited power for AI and banned new crypto mining activities. These actions highlight the growing emphasis on regulating AI technologies to ensure ethical and safe usage. Stay tuned as we explore these stories and more in this edition.

The World Internet Conference is set to convene in Wuzhen, China, from November 6-9, 2025, with a focus on AI innovations and governance strategies. Meanwhile, a report by the China Internet Network Information Center indicates that China's generative AI user base has surged to 515 million, driven by domestic AI models and government support.

The Dutch Government has taken control of Nexperia, a Chinese-owned semiconductor company, citing national security concerns and the need to secure critical chip availability. Meanwhile, California has enacted new AI regulation laws under Governor Gavin Newsom, focusing on transparency and deepfake protections, marking significant steps in AI governance.

Novatron Fusion Group is planning to build a pilot fusion reactor in the Nordic region by the 2030s, backed by a study from VTT Technical Research Centre of Finland. Meanwhile, Microsoft will enable local data processing for Microsoft 365 Copilot in the UAE, enhancing AI adoption and data security by early 2026.

OpenAI CEO Sam Altman announced that starting December 2025, ChatGPT will permit erotic conversations for verified adult users, introducing a new age-gating feature. Additionally, on October 20, 2025, BBB National Programs released the Generative AI & Kids Risk Matrix to help companies developing AI systems for children, aiming to mitigate risks and inform parents.

In recent legal developments, Salesforce is facing a copyright lawsuit from authors Molly Tanzer and Jennifer Gilmore, who claim their books were used without permission for AI training. Additionally, the Empowerment Congress has sued Doña Ana County to block a $165 billion AI data center, citing legal and environmental concerns.