AI Bubble Bursts in China While US Investors Debate

Investors and policymakers are increasingly debating whether the AI bubble is bursting, with leading AI stocks from chipmakers to neoclouds experiencing sharp declines. In China, the bubble has already burst, with top AI companies collapsing this year. Chinese AI stocks have plummeted, with MiniMax falling over 84% from its record and Z.ai dropping more than 80%. Even major players like Alibaba, Tencent, and CXMT have seen significant declines, mirroring the pattern of China's electric vehicle industry where hundreds of companies failed. US AI firms face similar risks, with OpenAI raising far less than expected and Nvidia falling from its yearly high. Neocloud companies like CoreWeave face financing stress with bond yields above 15%, while Elon Musk warned over 200 neoclouds could collapse.