Peter Schiff Warns That the 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. The Kimi K3 launched by Moonshot AI is intensifying China's low-cost AI competition, putting pressure on the valuation of US AI-related companies. The current market shows that "it is not AI technology that has a bubble, but AI stocks have a bubble," and he believes this bubble may have already begun to burst.

Peter Schiff mentioned that AI-related stocks are performing weakly, with $SPCX currently trading below $121, about 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 vigilant about the valuation correction risk of 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.