Economist and Bitcoin critic Peter Schiff has warned that the AI stock bubble may be bursting, with AI-related stocks showing signs of weakness. Notably, $SPCX is trading below $121, marking an 11% drop from its IPO price and a decline of over 46% from its all-time high. Schiff highlighted that while AI technology itself is not a bubble, the valuation frenzy surrounding AI stocks in capital markets is under pressure. The launch of Kimi K3 by Moonshot AI has intensified low-cost AI competition in China, further deflating the AI stock bubble. This development is putting additional pressure on the valuations of US AI-related companies. Schiff emphasized that the current market situation reflects a bubble in AI stocks rather than in AI technology itself, suggesting that the correction may already be underway.