The AI rally hits a speed bump

Today, we look at a topsy-turvy couple of days for AI-linked stocks on Asian markets and revisit some bubble discourse.

Read from your browser Daily Newsletter Welcome to Tech in Asia's daily newsletter, your essential dose of Asia's tech and startup buzz. Subscribe to this newsletter or send story tips to editors@techinasia.com. Ensure our articles appear in your Google searches: IN FOCUS A roller coaster couple of days for Asian AI stocks A look into our archives for some AI bubble predictions OpenAI moves closer to an IPO Hello Betamax, Pretty soon, the household names of the AI era are going to discover just how fickle the markets can be, as the likes of OpenAI, Anthropic, and SpaceX hurtle toward IPOs. Over the last couple of days, Asian AI-linked stocks got a taste of the market's whims. On Monday, semiconductor manufacturers like Samsung and SK Hynix saw their stock prices hit hard, with investors spooked by fears of the AI rally overheating. The slump got so bad that trading was temporarily halted in South Korea, as today's featured story outlines. However, what goes down often comes back up, at least on public markets. Indices in South Korea, Japan, and Taiwan all bounced back, with investors "buying the dip" of those same AI-linked firms they fled from a day before. So what does any of this mean? With growing questions about when (or whether) AI will generate a real return on investment for all those billions spent, this looks like a sign that markets are starting to interrogate the sector more seriously. Are we in the early stages of a bubble bursting? Maybe, maybe not. Either way, it's a good moment to revisit a piece my colleague Scott wrote at the end of last year, asking whether 2026 is the year the AI party ends. For now, the party isn't over. But a few folks might be wondering if they've stayed a little too long. Peter Cowan, engagement editor TOP STORY Asian tech stocks slide as investors question AI valuations South Korea's Kospi was down 8.3% when the market closed on Monday, marking its steepest daily decline since March 4. Just a day later, though, it surged 8.2%, essentially wiping out the losses. Volatility may be the new normal for markets everywhere, particularly as AI becomes more embedded in daily life and public firms. FROM OUR ARCHIVES Who's afraid of a big, bad AI bubble in 2026? This December 2025 piece has several prescient moments, but none more so than Karl Chan, founder and CEO of agentic AI firm Sourcy, asking how much longer capital markets can keep subsidizing AI models' cost structures. Since then, the big players have shifted toward token-based pricing, partially an effort to wean the industry off VC funding. Whether it's enough to close the gap between costs and revenues is another question entirely. The piece also gets into what a correction might actually look like and why Southeast Asia may be better cushioned than most regions. A DATA STORY YOU SHOULDN'T MISS Green-fingered investors Greentech may not be the sexiest investment around - partly thanks to the AI boom hogging the attention and capital - but if the climate scientists have a say, it's the most important sector to back right now. This list details which VCs are reaching into their pockets for greentech firms in Southeast Asia and India. Many names on the list are Indian VCs, though there are also investors from China and Europe. My colleague Elyssa recently reported on the state of funding in cleantech in Southeast Asia, and suffice to say, it's not a pretty picture. Still, there are some green shoots of hope, and if you're a founder concerned about the environment who's looking for your next investor, this list might be a good place to start. TRENDING NEWS 1️⃣ OpenAI confidentially files for US IPO The ChatGPT maker follows in the footsteps of AI rivals SpaceX and Anthropic in filing to go public. OpenAI was last valued at US$852 billion. 2️⃣ Paytm plans 4,000 hires as AI push expands Set to take place over the next nine months, the hiring spree would increase the Indian fintech firm's workforce of about 40,000 by roughly 10%. 3️⃣ China NEV exports rise 113% as home sales slow The country exported 424,000 new-energy passenger vehicles (NEVs) in May, but domestic retail sales slipped 5%. These NEVs include battery electric vehicles, plug-in hybrids, and fuel-cell vehicles. 4️⃣ Keppel enters South Korea with AI-ready data center One of Keppel's private funds has secured land in the Seoul metropolitan area for a 60-megawatt greenfield data center. 5️⃣ Singapore tops crypto-friendly city ranking for 2026 Multipolitan's Crypto Friendly Cities Index 2026 ranked cities based on factors like legal clarity, tax exposure, and real-world adoption. PRESS PEEKS The following press releases were published as they were received, without any editing from the Tech in Asia team. You, too, can publish your own press release on our site by simply filling out this form. Our team will get back to you by the next business day. eclicktech - Chinese Adtech Firm eclicktech brings Qwen-powered AI Agents to Singapore, Cuts Marketing Ops Costs by 30%: eclicktech has showcased its AI Agent system at Qwen Conference, cutting costs by 30% and boosting efficiency by 50%. 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