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China’s AI Bubble Burst: What Every AI Builder Needs to Know
6 min read6 days ago
For two years, China’s AI stocks only went one way.
Robot makers 8,000 times oversubscribed. Chipmakers jumping 700% on day one. Retail investors piling in, convinced the state had their back.
Then, in less than four months, $480 billion disappeared.
Bubbles don’t burst because the technology is fake. They burst because the price ran ahead of the proof.
The AI didn’t stop working. The expectations did. And every developer and founder building on AI right now should study exactly how that happened.
What Actually Happened
On October 26, 2026, Reuters put it bluntly: in China, the AI bubble has already burst.
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Here are the numbers that matter:
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By a broader measure, China’s mainland market has lost about $2.4 trillion since May.
