China’s New AI Model Triggers Fresh Tech Selloff

Moonshot AI released its latest multimodal model with a 1-million-token context window and advanced agentic capabilities, closing the gap with top U.S. offerings on key benchmarks. The development added to pressure on Nasdaq 100 futures, which fell as much as 2.3%, and semiconductor names already reeling from valuation debates. Z.ai, formerly Zhipu AI, also advanced with its GLM-5.2 open-weight model that rivals or exceeds certain Western frontier systems on engineering tasks while running efficiently on domestic hardware. DeepSeek continued its rapid gains with ongoing chip development efforts aimed at reducing reliance on Nvidia Corp. and Huawei Technologies Co. processors for inference workloads. Chinese firms surveyed by Bloomberg Intelligence plan to allocate 46% of AI accelerator budgets to domestic suppliers over the next 12 months, up from 30% currently, as Beijing pushes a nationwide data-center buildout valued at roughly 2 trillion yuan, or $295 billion, over five years. At least 80% of hardware and software in the project will come from local vendors. Full source: [China’s New AI Model Triggers Fresh Tech Selloff](https://leprivatebanker.com/2026/07/17/chinas-new-ai-model-triggers-fresh-tech-selloff/)