AI Bubble Risk: Cost of Intelligence Drops Faster Than Capital Can Repay
aiamblichus · x · 2026-08-04
In response to the recent trend of Chinese AI models like Kimi K3, DeepSeek V4 Flash, and Qwen 3.8 approaching frontier performance at 5-6x lower costs, an industry commentator argues that if the AI bubble pops, it won't be because the tech isn't real.
Rather, the crash would happen because the price of intelligence per task drops faster than the surrounding capital structure can be repaid. The author draws parallels to historical precedents like the railway and internet booms.
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