Lack of profits and the threat posed by western countries are raising concern about the sustainability of Beijing’s AI boom
Trillions of dollars have been wiped from China’s stock markets in recent months amid increasing anxiety about the future of artificial intelligence, as Beijing races against the United States for dominance in the sector.
The STAR 50 Index, which tracks technology and innovation companies on the Shanghai stock exchange, has plunged 40% since June. Other indexes of major companies dropped by about 20% over the same time period.
The precipitous drop has wiped out $2.4tn from the Chinese stock market since May, according to Bloomberg.
AI stocks account for over 40% of the stock market value in China and Hong Kong, according to Goldman Sachs, meaning that any dent in value will send shockwaves across the whole domestic market.
Is this just due to the stockpiling of chips and data centers?
I guess it makes sense coming from a country that built empty cities, but are they speculating the was the west is?
Like where were they hoping to make money?
Probably by selling before anyone else does. Of course that is unrealistic but gambling addicts aren’t known to be calculating or reasonable. This is a result from a long chain of bad decisions. The same kind of bad decisions big tech and it’s investors have made in the West too. It looks like AI isn’t one bubble but a pile of foam that’s starting to melt before our eyes. Bubble by bubble. Today it’s China and tomorrow it’s us.