{
  "id": 9207627,
  "title": "Is China’s Secret Power Advantage About To Trigger An 89% Crash In U.S. AI Stock",
  "url": "https://urgent.news/2026/09/22/is-chinas-secret-power-advantage-about-to-trigger-an-89-crash-in-u-s",
  "topic": "ai",
  "section": "AI",
  "published": "2026-09-22T22:00:00.000Z",
  "source": {
    "name": "OilPrice",
    "slug": "oilprice",
    "url": "https://oilprice.com/Energy/Energy-General/Is-Chinas-Secret-Power-Advantage-About-To-Trigger-An-89-Crash-In-US-AI-Stock.html"
  },
  "original_language": "en",
  "account": "China's AI industry appears poised to outpace the United States, potentially causing a significant decline in the valuation of U.S. AI companies. Mehrdad Emadi, head of risk analysis at Betamatrix, notes that Chinese AI firms currently match the performance of their U.S. counterparts while operating at a fraction of the cost. The primary reason for this disparity is the efficiency of China's power grid, which boasts a centralized design that enables seamless power distribution across long distances.\n\nIn contrast, the U.S. power grid is fragmented and aging, with three isolated interconnections that hinder the efficient transmission of energy. The high costs associated with transmitting electricity in the U.S. are primarily driven by the need for increased current or voltage, as well as the significant power loss that occurs over long distances. Furthermore, the U.S. power grid relies on standard 345-500 kV trunk lines and alternating current, unlike China's ultra-high voltage direct current lines, which enable up to 12 gigawatts of power transmission with minimal loss over thousands of kilometers.\n\nThe U.S. government and major tech companies have started to invest in nuclear power, such as small modular reactors, as potential solutions to address the power demands of AI data centers. However, these projects face significant challenges in terms of cost overruns, lengthy construction timelines, and regulatory approvals. Meanwhile, the global market for gas turbines, crucial for converting gas into electricity, is dominated by a few large companies, leading to long wait times and price increases.\n\nGiven the current structural advantages held by China's AI industry, U.S. AI firms may face a significant challenge in the near future, potentially triggering a crash in their stock market valuations.",
  "summary": "The current focus of the world’s governments, business and media when it comes to artificial intelligence (AI) is on the dangers it poses to jobs, democracy and even the future of humanity itself. For many of a certain generation, these fears crystallise in the cold but relentlessly courteous voice of HAL, the on?board AI in Stanley Kubrick’s 2001: A Space Odyssey. After a crew member questions…",
  "key_points": [
    "China's AI industry outpaces U.S., matching performance at lower costs",
    "U.S. power grid fragmented, aging, causing high transmission costs",
    "China's ultra-high voltage direct current lines enable efficient power transmission"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}