AI sector faces volatility as short bets rise in China and token prices shift globally

Investors are increasingly betting against major Chinese AI firms Zhipu AI and MiniMax Group as competition intensifies. Short-selling volumes for both companies reached record highs in June 2026, reflecting market uncertainty regarding which players will survive the ongoing generative AI price war. While Zhipu’s stock rose approximately 170% through mid-June, MiniMax shares fell nearly 50%, leading pair traders to go long on Zhipu and short on MiniMax.

In the broader global market, falling AI token prices are being analyzed through the lens of Jevons Paradox. Although retail token prices have declined, the underlying cost to rent H100 compute rose 27% during the same period. Experts suggest that falling costs may actually drive higher consumption rather than signaling a market peak. For instance, Alphabet CEO Sundar Pichai noted that AI usage reached 3.2 quadrillion tokens per month, a sevenfold increase within a single year.