China AI Cheaper Than US Big Tech AI Bubble Exposing - Americans Rise Against Big Tech With Camera Opposition

by Brian Shilhavy
Health Impact News

The US came close to an artificial bubble when a relatively little-known AI company from China released a new version of AI (Big Language Model) that rivaled or in some cases surpassed the performance of US Big Tech companies such as OpenAI, Anthropic and Google.

Not only is this AI model cheaper in China because it is “open source”, they have promised to make it available for free from July 27, 2026.

As a result, the US stock market and the heavy NASDAQ were all closed on Friday.

Here are some of the news releases from Friday.

From Fortune:

Markets may have experienced a second DeepSeek hit, this time thanks to a Chinese AI lab named after a Pink Floyd album.

Quotes:

On Thursday, Moonshot AI, a Beijing-based AI startup, unveiled the latest version of its giant language model Kimi, which promises the performance of Anthropic’s Fable 5 — perhaps the most powerful model available to the public today — at a fraction of the cost.

According to Moonshot, the Kimi K3, the largest open-weight model ever released, performed “competitively” with the Fable 5 and “significantly outperformed” Anthropic’s Opus 4.8 and OpenAI’s GPT 5.6 Sol.

The company’s officially published benchmarks consistently place the K3 among the top three AI models; an independent benchmark from Arena.AI even put the K3 as the best model available, ahead of the Anthropic.

Many observers, including Anthropic CEO Dario Amodei, did not expect the Chinese AI lab to release a model that could come close to the best US offerings for another six months.

For example, Tesla CEO Elon Musk suggested that this could happen by the first quarter of next year. The launch of the K3 quickly reduced that schedule, highlighting how quickly Chinese AI developers are closing the performance gap with their American rivals.

From Yahoo Finance:

China’s Kim K3 hits US stock markets. Is the American AI boom over?

Quotes:

China’s Moonshot released the Kimi K3 on Thursday, a model it says is compatible with Claude Fable Anthropic and OpenAI GPT-5.6. US chip stocks fell as investors questioned whether America’s AI advance was safe.

Kimi K3 contains 2.8 trillion parameters, making it the largest open source model ever released. Moonshot, a startup backed by Alibaba, is letting anyone download it for free starting July 27.

Chip stocks just had their worst week in 15 months

The Philadelphia Semiconductor Index, which tracks America’s biggest chipmakers, fell 12.5% this week, marking its worst week in more than 15 months. Nvidia, AMD and Broadcom all fell hard.

Meanwhile, the AI bubble question is back in the spotlight.

Markets have seen this movie before. When China’s DeepSeek shocked Wall Street in January 2025, Nvidia lost $589 billion in one day. CNBC called it the biggest one-day loss in market history.

Why Kimi K3 Attention Everyone

Kimi K3 was obtained. This week, it topped the Arena Coding chart with 1,679 points, pushing Claude Fable 5 into second place.

It is also cheap. Moonshot charges $3 per million tokens imported, while Fable 5 costs $10. The model reads one million tokens at a time, which is enough to store the entire code base in one request

Here’s a nice short video (AI generated) that explains what happened with China’s Kimi K3:

Here’s some more news about the upcoming AI crash that came out last week.

Fears of an AI bubble are starting to pop

Investors are freaking out.

Quotes:

It looks like another domino is falling as part of the Ruth Goldberg machine that will eventually pop the AI investment bubble.

Earlier this month, economic forecasters warned that overspending on AI was far more severe than on Black Tuesday, the day that launched the worst economic crash in the history of the industrialized economy. Now, investors seem to be coming to the same conclusion themselves.

This week, Taiwanese semiconductor giant Taiwan Semiconductor Manufacturing (TSMC) released its second quarter earnings results, which showed an impressive revenue of more than $40 billion, a record amount for the company.

While this should come as good news for investors, the results were quite the opposite, with TSMC shares falling four percent. That in turn sent the tech-heavy Nasdaq 100 down 1.4 percent on Thursday, extending losses from Wednesday, Bloomberg reported.

The issue appears to be TSMC’s rethinking of its capital expenditures. As a key manufacturer of chip design company Nvidia — arguably one of the most important players in the AI boom — TSMC is a key bellwether for investor confidence around the powerful technology.

The problem is that in addition to posting record revenue, the Taiwanese chip company raised its 2026 spending forecast to $60-64 billion, from $52-56 billion. The shift will test how much more investors are willing to spend on AI, a technology that has yet to justify the nearly $1.6 trillion it spent developing over the past decade.

Full article.

“Futurizm” also published an article about how Tech’s richest billionaires are actually rooting for the AI bubble to collapse so the industry can consolidate into a few Big Tech companies.

This reminds me of how another technological advance, the mass production of cars in the early 1900s, led to hundreds of companies making cars in the “1920s”.

But the collapse of the economy reduced them to the “big three”, where all other businesses were destroyed by the financial crash before World War II, now known in US history as the “Great Depression”.

The number of active automobile manufacturers dropped from 253 in 1908 to only 44 in 1929, with approximately 80 percent of the industry’s output accounted for by Ford, General Motors, and Chrysler, which was founded by Maxwell in 1925 by Walter P. Chrysler is organized.

Most of the remaining independents were wiped out in the Great Depression, and Nash, Hudson, Studebaker and Packard only collapsed in the post-World War II era. (Source.)

Here is the article from Futurism:

Tech billionaires are quietly belly-flopping to burst the AI bubble

“Stop trying to pop bubbles.”

Quotes:

Some of the world’s richest business people are chopping it up on something that defies orthodoxy: the AI bubble, they hope, will soon burst.

Gone are the days of debating whether AI is an economic bubble.

Some of the biggest players in the tech industry, who have already sunk $800 billion to profit from AI development, have accepted that the financial arithmetic in AI just doesn’t add up. But here’s the catch: while the AI bubble objectively makes life harder for Silicon Valley’s elite, the economic consequences of its collapse could actually be a good thing.

New report by Atlantic details the heterodox sentiments that pervade the tech industry. The pro-Bubble position has its roots in the 2024 book Boom: Bubbles and the End of the Stagnation by tech investors Tobias Huber and Byrne Hobart.

These fellows argued that there are basically two types of economic bubbles: good bubbles, like the Dot Com bubble, and bad ones, like the 2008 credit crisis.

Although both cause significant economic damage when they burst, Huber and Hobart argue that the bursting of a good bubble still helps accelerate technological progress in a capitalist economy. With bubbles, said Hobart to Atlantic“a set of investments that you could never save otherwise suddenly make sense.”

This attitude helped tech executives and their investors rationalize one of the most absurd concentrations of financial capital the US has seen in decades. “Stop trying to burst bubbles,” as venture capitalist James Thomason wrote last year. “Yes, bubbles create volatility. Yes, investors lose money. Yes, when companies fail, employees lose their jobs. But the alternative is to underinvest in transformative opportunities.”

Some of the biggest names in tech have shown support. Last October, Amazon founder and CEO Jeff Bezos commented that bubbles “it might even be good because when the dust settles and you see who the winners are, societies benefit from these inventions.”

CEO of OpenAI Sam Altman argued the same that AI will”a huge net win for the economy” no matter what, even if “an amazing amount of money” ends up in a blender.

Of course, if it all comes down to meIt’s not the tech billionaires who will suffer. Some will go bankrupt, sure, but that just means less competition for market dominance. Each sees itself as too big to fail – so when the bubble bursts, you can expect a lot of drama.

Americans rose up against big tech by opposing the cameras

Big Tech is not invincible. As I have been saying for years, just stop using their products!

But I don’t think the majority of Americans are ready to give up their cell phones just yet, which is what it really takes to break the whole system.

Here are two videos that explain people’s anger towards Flock cameras. One explains what they are and the dangers they pose, and the second by a lawyer explains the public’s reactions so far.