Is China’s AI Bubble on the Verge of an Unprecedented Collapse?
Just a year ago, China’s artificial intelligence (AI) sector was booming. Millions of high-end Nvidia (NASDAQ: NVDA) GPUs found their way into the country, despite U.S. export restrictions and tariffs. Demand was so high that Nvidia’s H100 chips, essential for training AI models, were selling for as much as 200,000 yuan ($28,000) each on the black market. In response to this soaring demand, China rapidly constructed hundreds of data centers to house AI servers. However, according to a recent MIT Technology Review report, the AI bubble in China has lost momentum. Government funding has dried up, leading project managers to … Read more
