480 billion dollars vanished: has the AI bubble just burst in China?
The artificial intelligence bubble has already burst in China. After a period of significant stock market speculation, the financial markets of the Middle Kingdom are undergoing a significant correction which erases…
The artificial intelligence bubble has already burst in China. After a period of significant stock market speculation, the financial markets of the Middle Kingdom are undergoing a significant correction which erases hundreds of billions of dollars in valuation.
Between stock market collapse and pharaonic investments, the Chinese technology sector is going through a zone of strong turbulence. Driven by a stock market euphoria that some describe as speculative madness, the STAR50 index of the Shanghai stock exchange, which brings together players in artificial intelligence and semiconductors, fell by 40% in the space of four months, eliminating $480 billion in stock market value according to information relayed by Reuters.
After strong upward momentum, the Shanghai stock market finally deflated. Among the most notable examples is the robotics company Unitree, which has lost 50% of its valuation since its IPO last August. For its part, chipmaker CXMT has lost more than a quarter of its value over the past month.
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Despite this severe correction, some giants continue to raise a lot of funds. This is particularly the case for DeepSeek, which recently completed a $15 billion fundraising effort to compete with American competitors OpenAI and Anthropic, to name but a few. For its part, Huawei obtained a $2.3 billion loan from Chinese banks to finance its purchases of chips dedicated to artificial intelligence.
Another element that has not helped the Chinese market: the restrictions imposed by the United States which seek to isolate the Chinese industry from competition through customs barriers and proposed sanctions targeting data center equipment. These export barriers and the ban on marketing products abroad therefore also weigh heavily on the slowdown of the market around AI in the country.
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Machine-translated from French
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- 01net29 Oct, 10:18480 billion dollars vanished: has the AI bubble just burst in China? ↗Figures: 480 milliards
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