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

According to Odaily, economist and Bitcoin critic Peter Schiff stated that as Chinese AI model competitors rapidly emerge, the AI bubble is further deflating. Moonshot AI's Kimi K3 is strengthening the low-cost AI competition in China, putting pressure on the valuations of US AI-related companies. He commented that the current market is experiencing a bubble in AI stocks rather than AI technology itself, and believes this bubble may have already begun to burst.

Peter Schiff mentioned that AI-related stocks have shown weak performance, with $SPCX now trading below $121, about 11% lower than its IPO price and down over 46% from its historical peak. As more low-cost AI models appear, previous market expectations for high growth in AI companies may be subject to reassessment, and investors should be wary of valuation correction risks in AI concept stocks. However, Peter Schiff also emphasized that AI technology itself is not a bubble; the real turbulence is in the capital market frenzy surrounding AI-related valuations.