DOW ATH's, JPY 40y lows, NIKKEI and KOPSI big winners YTD / AI isn't a bubble, the price of U.S AI is the bubble !
- sc0172
- 1 day ago
- 3 min read
China is effectively flooding the US market with open‑source AI models that are close enough to state‑of‑the‑art and essentially free. No one is going to turn down the opportunity to cut an AI spend from 100 million to 10 million, even if the model isn’t perfect. In that environment, Anthropic and OpenAI cannot easily justify their pricing or their valuations, which helps explain why IPO plans have suddenly stalled. The real bubble in AI is in the pricing of AI. DeepSeek’s funding is directly backed by the Chinese government, and the strategic risk is clear: Chinese models may keep getting better, faster, cheaper – and remain open‑source – while US models are export‑controlled, expensive, and closed. A year ago, almost nobody would have believed that Chinese AI systems could be broadly comparable to US models at roughly 10% of the cost, yet that’s exactly the world we’re moving into
Markets : DOW at record high to close H1 2026, NIKKEI had its sharpest quarterly advance since 1965 (up 38% !), while KOSPI is up 70% driven by chipmakers, JPY to a 40year low (BoJ fail !, and againJPN authorities 'stand ready to intervene' apparently, USDollar rallies strongly, #MSTR Strategy abandons ‘Never Sell Bitcoin’ mantra in bid to outlast Crypto winter
Coinbase switched to open-weight Chinese models from Zhipu and DeepSeek, and shaved nearly 50% off the company's internal AI spending !!..
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>>> the moment cost start to matter and China 'wins' over U.S on AI ?
The numbers are absolutely ridiculous: Running the same enterprise workload through Anthropic's Claude costs $4,811. Running it through Zhipu's GLM 5.2 costs $544. That's a 9x price difference for equivalent output
History will judge Brexit not by the arguments made in 2016, but by the outcomes delivered for the decades to come.
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