China's AI Bubble Has Already Burst

Concerns are growing that the AI bubble may be bursting, with leading stocks like Nvidia and AMD declining. In China, the bubble has already burst, as major AI companies have seen their share prices collapse dramatically. Chinese AI firm MiniMax has fallen over 84% from its record high to $161, while Z.ai dropped more than 80% to $483. Major companies like Alibaba, Tencent, and Xiaomi have also declined, mirroring the pattern of China's electric vehicle industry, which saw hundreds of companies consolidate after intense competition. In the US, AI companies face significant headwinds, with OpenAI raising $11 billion, far below its $30 billion target. Neocloud companies like CoreWeave and Nebius are struggling with financing stress, as bond yields exceed 15%, and Elon Musk has warned that over 200 such firms could collapse.