AI founders offered contrasting views on growing fears of an AI bubble as market anxiety deepened this week.
According to a report from CNBC, market concerns intensified this week as a series of negative signals around the artificial intelligence trade prompted renewed fears of a potential bubble. The report noted that famed short-seller Michael Burry questioned the sustainability of AI-driven earnings, while analysts voiced growing unease about rising debt levels used to finance AI infrastructure projects. Stocks like CoreWeave also slumped following weaker-than-expected guidance.
CNBC’s Deirdre Bosa spoke with two prominent AI startup founders to gauge reaction from within the sector. Amjad Masad, founder and CEO of Replit, acknowledged that momentum had slowed after the initial surge of interest earlier in the year. “Early on in the year, there was the vibe coding hype market… The tools were not as good as they are today. So I think that burnt a lot of people,” he said, adding that “a lot of companies that were making money are not making as much money.” He also noted that many firms previously shared annualized recurring revenue weekly, and “now they’re not.”
Navrina Singh, founder and CEO of Credo AI, offered a different view, insisting enthusiasm remains strong. “I don’t think we are in a bubble,” she said, arguing that AI has become the key growth driver for global businesses and will continue attracting investment across capabilities, governance, energy, and infrastructure.