Peter Schiff warns that the AI bubble is bursting, and Kimi K3 intensifies cost competition pressure

Odaily reported that economist and Bitcoin critic Peter Schiff stated that as Chinese AI model competitors accelerate their rise, the AI bubble is further deflating. Moonshot AI's Kimi K3 is intensifying low-cost AI competition in China, putting pressure on the valuation of US AI-related companies. He believes that "it is not AI technology that has a bubble, but AI stocks," and that this bubble may have already begun to burst.

Peter Schiff mentioned that AI-related stocks are showing weak performance, with $SPCX currently trading below $121, approximately 11% lower than its IPO price and over 46% down from its all-time high. As low-cost AI models continue to emerge, the market's previous high growth expectations for AI companies may face a reassessment, and investors need to be wary of the risk of valuation corrections for AI concept stocks. However, Peter Schiff also emphasized that AI technology itself is not a bubble; what is truly being impacted is the capital market valuation frenzy centered around the AI theme.