U.S. markets are gripped by the ¡°AI scare trade,¡± with investors selling software firms and wealth managers concerned that rapid advances in artificial intelligence will erode established business models.
In China, the mood is far more upbeat. Instead of worrying about disruption, investors are chasing perceived winners, drawn by AI¡¯s growth prospects and its potential to drive cost savings for end users.
Local firms that have released new models or upgraded existing ones are investor favorites. MiniMax Group Inc. and Knowledge Atlas Technology JSC Ltd. ¡ª better known as Zhipu ¡ª are the most notable examples, with their stock price more than doubling in February. Bullish ratings from Wall Street banks including Morgan Stanley are fueling the optimism as pure AI plays lure investors away from traditional Internet giants.
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