🚨 THE FIRST AI BUBBLE HAS BURST. China's STAR50 index, which tracks the country's biggest AI and chip companies, has crashed 40% in less than four months. That has wiped out about $480 billion in market value. The damage has spread across the whole market. China's main CSI 300 index is now in a bear market, down 20% from its June high, and Chinese stocks have lost $3.5 trillion in total value since their May peak. China's two listed AI model companies, MiniMax and Zhipu, have lost a combined $150 billion from their highs. Robot maker Unitree crashed 50% since its August listing, and optical parts makers Zhongji Innolight and Eoptolink are down about 60%. The warning signs were already there. At the peak, the STAR50 traded at almost 250 times earnings. AI stocks made up 42% of China's entire stock market and 57% of all trading, mostly driven by retail investors. Now look at the US. AI-linked stocks make up 49% of the S&P 500's value, according to JPMorgan. That's even higher than China's 42% before its crash. The S&P 500's Shiller P/E ratio is above 40, the second highest in over 150 years. The only time it was higher was right before the dot-com crash. Margin debt, the money investors borrow to buy stocks, has hit a record $1.5 trillion. And Anthropic just filed for an IPO that could value it at $2 trillion, after losing $80.7 billion in the first half of this year. The US is now flashing the same warning signs China did before its AI stocks crashed.