China's AI Stock Bubble Bursts, Erasing $480 Billion

China's AI stock bubble has burst, with the STAR50 index of AI and semiconductor companies collapsing 40 percent over four months, erasing $480 billion in market value. The downturn has hit major firms, with robotics company Unitree's shares halving since its August IPO and chipmaker CXMT losing over a quarter of its value in the past month. State-backed investors sold into rallies to curb volatility, but demand for AI products remains weak. Despite the crash, investment continues, as DeepSeek raised $15 billion and Huawei secured a $2.3 billion loan for AI chips. US restrictions on Chinese AI exports may have worsened the decline, though global concerns about AI profitability persist, highlighted by Anthropic's $80 billion loss.