Resolution note
This report was closed as "Works As Intended" due to the following comment by @unknown:
Any part of an entities behavior that is not implemented as part of the AI is not affected by the NoAI tag
When summoning other mobs with the "NoAI" tag set to 1, they will not fall due to gravity, nor will they be knocked back by damage taken. Squid, on the other hand, are affected by gravity and knockback.
/summon Squid ~ ~ ~ {NoAI:1}
The tag does work correctly for other features, such as swimming. Ghasts will also be affected by knockback, though the tag does prevent them from flying around normally.
/summon Ghast ~ ~ ~ {NoAI:1}
Related issues
is duplicated by
Comments


I'd really prefer Squid not to be affected by gravity.

Confirmed for 1.8.

Confirmed for 1.8.1-Pre4

Confirmed for 1.8.1.

I wish that gravity and physics is not the part of the mob ai and nogravity tag for all mobs.

Confirmed in 1.8.3.

Confirmed in 1.8.4.

Confirmed for 15w32c!

As @unknown has stated on several issues,
Any part of an entities behavior that is not implemented as part of the AI is not affected by the NoAI tag.
Squid and ghasts use the AI system to pick destinations to swim/fly to, thus stopping AI updates stops them from moving. However, because they respond to gravity differently than most mobs, they don't use the AI system for it. Knockback is presumably a similar situation. These may all get "fixed" once they expand the AI system so they can more easily move mob-specific behaviors to it, but for now are considered "Works As Intended".
Confirmed for 1.8pre1