Svmuu News: Economist and Bitcoin critic Peter Schiff stated that as Chinese AI model competitors rise rapidly, the AI bubble is continuing to deflate,Kimi K3, launched by Moonshot AI (The Dark Side of the Moon), is intensifying low-cost AI competition from China, putting pressure on the valuations of U.S. AI-related companies. He noted that the current market situation “is not a bubble in AI technology, but a bubble in AI stocks,” and believes this bubble may have already begun to burst.
Peter Schiff noted that AI-related stocks are performing weakly, with the $SPCX currently trading below $121—about 11% below its IPO price and more than 46% below its all-time high.As low-cost AI models continue to emerge, the market’s previous expectations of high growth for AI companies may face reassessment, and investors need to be wary of the risk of a valuation correction in AI-themed stocks. However, Peter Schiff also emphasized that AI technology itself is not a bubble; what is truly under pressure is the valuation frenzy in the capital markets that has formed around the AI theme.