AI bubble is not bursting now as now it's China vs America
Everyone keeps saying the AI bubble is about to pop.
I don’t think it is. Not anytime soon.
This isn’t just hype anymore, it’s a three-way fight.
US companies are competing hard with each other (OpenAI, Google, Anthropic, Meta). At the same time, they’re all dealing with fast-improving Chinese open-source models. And over all of this, there’s a bigger layer: a geopolitical race that’s starting to look like a new Cold War, just centered on AI.
What’s interesting is China isn’t slowing down despite hardware limits. They’re focusing on efficiency, building distilled models that punch way above their weight. Models like GLM 5.2 competing with top-tier systems show that raw compute isn’t everything anymore.
That puts pressure on US players to keep pushing harder and spending more just to stay ahead. At this point, it’s not just business, it’s strategic.
And that’s why hardware demand isn’t cooling off. RAM, HBM, chips, everything is under pressure. You can feel it in prices across the board, from phones to cars.
As long as this three-front race keeps heating up, I don’t see the AI bubble bursting or hardware prices dropping anytime soon.
What do you all think, is this sustainable, or are we still heading toward a correction?