Chinese markets lose trillions as race for AI supremacy with US takes its toll
TL;DR
Trillions of dollars have been wiped from China's stock markets in recent months amid growing anxiety about the future of artificial intelligence, as Beijing races 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, while other indexes of major companies fell by about 20% over the same period.
Nauti's Take
The slump shows the limit of an AI boom without profits: valuations only hold while investors believe in future earnings. For investors there may also be an opportunity, since Chinese AI firms now trade at much lower valuations.
Anyone investing or relying on Chinese open-weight models should check political risk and provider stability.
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