Chinese hedge funds warn the AI 'super bubble' is ready to burst

What happened

Bloomberg reported on June 26 that two of China's best-known hedge fund managers are warning clients that the global AI trade has crossed from exuberance into 'super bubble' territory. Wealspring Asset ($1.4B AUM) and Shanghai Banxia ($294M) sent investor letters with explicit warnings.

Context and impact

The warning landed amid a chip selloff — Nasdaq -2.2%, KOSPI -10% (circuit breaker tripped), Micron -13%. Wealspring's founder Yang Dong is famous in China for calling the 2007 top. Banxia specifically cites pressure on Anthropic's revenue growth as the trigger.

Details

• Wealspring: AI infrastructure firms lack a long-term moat with 'quite ordinary' business models
• Banxia: 'the trigger for the AI bubble to burst has already appeared'
• Banxia predicts Anthropic's annualized revenue run-rate will fall short of market expectations
• June has seen eight moves of 5% or more in chip names
• Both funds posted small YTD losses but remain profitable longer-term