Markets have been volatile this week as negative headlines around the artificial intelligence (AI) trade fueled fears of a potential bubble. Concerns intensified after short-seller Michael Burry questioned the sustainability of AI earnings, debt levels for AI infrastructure rose, and high-profile companies like CoreWeave fell sharply on disappointing guidance.

CNBC spoke with founders of leading AI startups to gauge industry sentiment:

• Amjad Masad, CEO of Replit, acknowledged a slowdown in hype around coding-focused AI tools: “Early on in the year, there was a vibe coding hype market… That burnt a lot of people. A lot of companies that were making money are not making as much money.”
  Masad noted that companies are no longer publishing annualized recurring revenue figures weekly, reflecting a more cautious market outlook.
• Navrina Singh, CEO of Credo AI, which specializes in AI oversight and risk management, remains optimistic: “I don’t think we are in a bubble. AI is already our biggest growth driver for businesses. There has to be more investment on capability, governance, energy, and infrastructure.”

The contrasting perspectives highlight a market in transition: while early hype has cooled, some founders see continued long-term growth opportunities.