Peter Schiff warns AI bubble is bursting, Kimi K3 intensifies low-cost competitive pressure

Economist and Bitcoin critic Peter Schiff stated that as Chinese AI model competitors accelerate their rise, the AI bubble is further deflating. Moonshot AI (Yue Zhi An Mian) launched Kimi K3, which is intensifying China's low-cost AI competition and putting pressure on the valuation of US AI-related companies. He noted that the current market "is not an AI technology bubble, but an AI stock bubble," and believes this bubble may have already started to burst.

Peter Schiff mentioned that AI-related stocks have shown 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 reassessment, and investors need to be wary of the risk of valuation corrections in 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 built around the AI theme.