A huge market correction is inevitable as cheap Chinese AI cuts support for the stock market's boom.

Chinese AI like DeepSeek are far cheaper than American AI. DeepSeek's V4 Flash model costs just 2 cents, compared with $2.75 for the same task on Anthropic's Claude Fable 5, according to benchmarking site Artificial Analysis. Companies are abandoning American AI; OpenRouter estimates Chinese AI has grown from 2% of the market to about 30% currently -- and recent Chinese AI advances are likely to accelerate the shift.

The big American companies that have committed the hundreds of billions that have been driving stock market growth for the past year will be forced to retrench. These companies and all the downstream beneficiaries of their investments will be worth a fraction of their current value.

[Here](https://finance.yahoo.com/technology/ai/articles/deepseek-champions-china-bid-flood-003610561.html?.tsrc=372&ncid=crm_-2204936-20260718-1--A&bt_user_id=SYER8caYbPb%2Bk1LYd9%2FIwFqKpbGL5e1rw3XRPpGi2%2BSgvtvm9F4W38k2DMKW%2Fdn6JFuv0VEQ7ty3Wl%2F6hJXuespfmik95FGVRzHLyQ7sX8B7N5Bpf0wryMu%2BxfGnVOTE&bt_ts=1784369127775)'s a good short article describing the shift.