Is China’s Massive AI Bubble About To Burst in Record Time?

quote:

---

What happened to China’s AI boom, which just a matter of months ago was in full tilt and bursting at the seams? Last year saw millions of high-end Nvidia (NASDAQ:NVDA) GPUs find their way across the country, wearily navigating tariffs and U.S. export restrictions. But they braved this climate heroically.

---

quote:

---

China's rapid expansion of AI infrastructure was monolithic, but it didn’t come without severe challenges, most of which have been chalked up to poor planning and a misalignment between built capacities and actual demand. On top of that, it was a rush job, and many AI data centers were constructed without a clear understanding of the specific requirements for training versus inference workloads, leading to inefficiencies, according to Alibaba’s CEO, who sees a big bubble here, as reported by Barron’s.

---

quote:

---

The growing pain China’s AI industry is going through is largely a result of inexperienced players—corporations and local governments—jumping on the hype train, building facilities that aren’t optimal for today’s need,” Jimmy Goodrich, RAND Corporation senior advisor for technology, told MIT Technology Review.

---