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China’s AI cost edge could pressure U.S. AI stock valuations
OilPrice highlights that some Chinese AI players aim for roughly 90% of U.S. competitors’ performance at about 10% of the cost, a gap that could weigh on U.S. firms’ market values.
OilPrice frames the AI debate as more than job and democratic risk, warning that U.S. AI firms face a structural cost disadvantage versus Chinese rivals.
The outlet cites Mehrdad Emadi, head of risk analysis and energy derivatives markets consultancy Betamatrix, who says major Chinese AI players can reach around 90% of the performance of U.S. competitors at about 10% of the cost.
OilPrice connects that gap to potentially large declines in U.S. AI companies’ stock market valuations, suggesting the valuation pressure could be a near-term catalyst.