I will take from the comments the answer to the question of how the capitalization crisis of Chinese companies is related to the American flagships. We need to talk generally about the relationship between profitability and valuations of AI companies. Here, with one number, they often try to answer three different questions at once: is there a need for the product, does the business model work, and is the price set by the investors reasonable for it. And here everything is not obvious. A sought-after product may well turn out to be a bad investment. Let's start with capital letters. The revenue or earnings multiplier depends on expected growth, future margins, the need for new investment and the cost of capital. State risks and protection of investors' rights change the assessment, sometimes radically. Therefore, the same profit today can cost completely different money. A high valuation makes it easier to raise capital, but it in itself does not fill the company's account. Next, you need to understand what stage the market and the specific company are at. In the search phase, the capital pays for experiments: who needs the product and what the customer will agree to pay regularly. If the search is successful, a product-to-market match appears and scaling begins. The company expands sales, builds capacity, recruits people before it receives a full return. The loss at this moment can grow together with a perfectly healthy business. As the market becomes saturated, growth slows and it becomes increasingly difficult to justify spending on future market capture. The company is starting to need sustainable cash flow. Several models work here at once. The S curve describes the distribution of the product: slow start, acceleration, saturation. The learning curve shows how the accumulated experience reduces the cost. And the competition determines what part of this savings the producer will keep for himself and what part he will give to the buyer through a price reduction. A rapidly growing market is often combined with a decrease in the profitability of its participants, especially if monopoly and technological rent protection have not been created (we discuss this regularly).

I will take from the comments the answer to the question of how the capitalization crisis of Chinese companies is related to the American flagships. We need to talk generally about the relationship between profitability and valuations of AI companies. Here, with one number, they often try to answer three different questions at once: is there a need for the product, does the business model work, and is the price set by the investors reasonable for it. And here everything is not obvious. A sought-after product may well turn out to be a bad investment. Let's start with capital letters. The revenue or earnings multiplier depends on expected growth, future margins, the need for new investment and the cost of capital. State risks and protection of investors' rights change the assessment, sometimes radically. Therefore, the same profit today can cost completely different money. A high valuation makes it easier to raise capital, but it in itself does not fill the company's account. Next, you need to understand what stage the market and the specific company are at. In the search phase, the capital pays for experiments: who needs the product and what the customer will agree to pay regularly. If the search is successful, a product-to-market match appears and scaling begins. The company expands sales, builds capacity, recruits people before it receives a full return. The loss at this moment can grow together with a perfectly healthy business. As the market becomes saturated, growth slows and it becomes increasingly difficult to justify spending on future market capture. The company is starting to need sustainable cash flow. Several models work here at once. The S curve describes the distribution of the product: slow start, acceleration, saturation. The learning curve shows how the accumulated experience reduces the cost. And the competition determines what part of this savings the producer will keep for himself and what part he will give to the buyer through a price reduction. A rapidly growing market is often combined with a decrease in the profitability of its participants, especially if monopoly and technological rent protection have not been created (we discuss this regularly).