Lack of profits and the threat posed by western countries are raising concern about the sustainability of Beijing’s AI boom
Trillions of dollars have been wiped from China’s stock markets in recent months amid increasing anxiety about the future of artificial intelligence, as Beijing races against the United States for dominance in the sector.
The STAR 50 Index, which tracks technology and innovation companies on the Shanghai stock exchange, has plunged 40% since June. Other indexes of major companies dropped by about 20% over the same time period.
The precipitous drop has wiped out $2.4tn from the Chinese stock market since May, according to Bloomberg.
AI stocks account for over 40% of the stock market value in China and Hong Kong, according to Goldman Sachs, meaning that any dent in value will send shockwaves across the whole domestic market.
AI does have legitimate use-cases as something very good at pattern recognition. Because of that, it’s helpful in manufacturing and agriculture, which is why China is prioritizing efficiency and being low-overhead. The US sees it as a threat, because their models are prioritizing profits and wild promises to gain investment, and this is why they will lose the “race.”
The actual second space is going on right now with the race to colonize the moon, funny enough.
Yeah. Shoving it into everything and seeing what works. Pretending it’s the biggest invention since sliced bread.