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Markets cut chip values after unverified China AI model releases
The article says global chip stocks lost about US$3 trillion in market value following the releases, before performance evidence was fully auditable.
South China Morning Post Economy says global markets reacted to the release of two Chinese AI models, Kimi K3 from Moonshot AI and Qwen3.8-Max from Alibaba Group, even before outside observers had access to fully auditable evidence of their claimed performance.
The outlet links the selloff to a repricing of scarcity, arguing investors had built portfolios on the assumption that the most capable AI systems would remain expensive, American, and controllable, and that assumption has been discounted as a result of the news cycle.
In the weeks that followed, SCMP Economy reports global chip stocks shed about US$3 trillion in market value, with the article describing the reaction as less about verified engineering breakthroughs and more about how restrictions on compute access could affect future AI competition.
The piece adds that it sees little regulation as the primary cause, pointing to the lack of a comprehensive US federal AI statute and saying US rules are unlikely to prevent American hospitals, insurers, or car plants from deploying these systems.