The AI supercycle just hit a wall. A trillion-dollar chip stock wipeout, a $20B hedge fund implosion, and a duopoly begging for regulation to kill competition. The capability race is over. The war for control has begun.

The AI chip supercycle just demonstrated its fragility with a trillion-dollar wipeout, exposing the risks of a supply chain built on leveraged momentum. Meanwhile, the frontier AI labs are no longer just building; they are now openly lobbying for government regulation to slow down competitors and cement their market control, even as free, powerful models from China threaten to commoditise their core business.