AI anxiety is growing among startup founders as concerns mount over whether the artificial intelligence boom is entering a bubble phase. This week, markets remained tense amid a wave of negative headlines questioning the sustainability of AI-driven valuations. High-profile short-seller Michael Burry cast doubt on the long-term viability of AI earnings, while worries intensified over the massive debt being used to finance AI infrastructure projects. The downturn was underscored by the sharp drop in shares of once-high-flying company CoreWeave following disappointing financial guidance. In response, CNBC’s Deirdre Bosa spoke with founders at the heart of the AI revolution, including Amjad Masad, CEO and founder of Replit, an AI-powered coding platform. Masad acknowledged a noticeable cooling in the market’s enthusiasm. “Early this year, there was a strong ‘vibe coding’ hype cycle,” he said. “Everyone wanted to jump in, even though the tools weren’t as advanced as they are now. That led to a lot of disappointment and burnout.” He noted that many startups that once proudly shared weekly recurring revenue figures have since stopped doing so, signaling a shift in investor sentiment. Despite the slowdown, Navrina Singh, founder and CEO of Credo AI—a company focused on AI governance and risk management—remains confident. “I don’t believe we’re in a bubble,” she said. “AI is no longer just a trend; it’s becoming the central driver of business growth and innovation. This isn’t a passing fad. It’s the new reality.” Singh emphasized that the surge in investment isn’t just about building AI models—it’s also about ensuring they’re developed responsibly, with proper oversight, energy efficiency, and infrastructure support. As the AI landscape evolves, founders are grappling with both the excitement of transformation and the pressure of accountability. While some sectors are experiencing a retreat from hype, others see the current moment as a necessary recalibration toward sustainable, long-term progress.