The AI Bubble Bursts: A Wake Up Call for Chinese Investors The collapse of Situational Awareness, a US hedge fund focused on artificial intelligence (AI), has sent shockwaves through China's tech investment community.
The fund's implosion saw its portfolio value plummet 67% in July alone, serving as a stark reminder that the AI hype machine can be more mirage than reality.
Shanghai based analysts Harry Shen and Michael Zhang have been warning Chinese investors to exercise caution: "Don't use leverage; don't trade with borrowed money.