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Did China Just Pop the AI Bubble?
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this post was submitted on 27 Jan 2025
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Everybody involved at that level knows the AI hype is a sham, so they have their finger hovering above the "sell" button. Open AI's valuation and cash burn, for example, assume a much higher revenue in the future -- but if this upstart can release a similar product with a fraction of the overhead, that cash burn now becomes a massive liability.
Edit to add a source from a real news outlet instead of shitty YouTube clickbait: https://www.bloomberg.com/opinion/articles/2025-01-27/china-s-ai-deepseek-shows-silicon-valley-s-huge-blindspot