Due to restrictive stock lockups limiting the public float of China’s most overvalued artificial intelligence firms, short sellers confirmed Tuesday they have been forced to formally schedule the total financial ruin of the sector for mid-summer.
Traders looking to bet heavily against unprofitable tech companies have expressed deep frustration over the current scarcity premium protecting China’s booming AI market. With the vast majority of shares held by insiders until the lockup period expires this summer, hedge funds are currently unable to borrow enough stock to short the heavily hyped, zero-revenue operations into the earth's crust.
Many institutional investors report pacing around their trading floors, staring at dashboards of Chinese language-model startups and counting down the days until they can legally begin driving their share prices to zero.
It is incredibly agonizing to watch a firm whose only product is a plagiarized image generator trade at a fifty-billion-dollar valuation, knowing you cannot actively engineer its ruin until Q3.
Thorne added that his team has had to content themselves with building massive, highly leveraged short-selling algorithms in an offline sandbox, effectively treating the upcoming July lockup expiration like a highly anticipated summer blockbuster.
Analysts note that until the summer float expands, the Chinese AI firms will continue to enjoy a rare, mathematically enforced grace period. Reached for comment, executives at several unprofitable Beijing-based AI startups stated they plan to use their remaining three months of artificial viability to issue as many press releases containing the phrase 'enterprise machine learning' as humanly possible.