Startup founders react to bubble fears

Markets have been on edge this week, as a steady stream of negative headlines about AI trading stoked fears of a bubble.

Famous short seller Michael Burry Casts doubt on Sustainability From the profits of artificial intelligence. Concerns about Debt levels Funding for building AI infrastructure has grown even higher. And once like flying high CoreWeave tank on Disappointing directions.

CNBC’s Deirdre Boza asked those at the center of the boom what they thought, as she sat down with the founders of two of the hottest AI startups.

Amjad Massad, founder and CEO of AI programming startup Replit, admits there has been a slowdown.

“Early in the year, there was a buzzing market for spirit programming, where everyone had heard about spirit programming. Everyone wanted to try it. The tools weren’t as good as they are today. So I think that burned a lot of people,” Massad said. “So, I would say there’s less life in programming, the hype is slowing down, and a lot of companies that were making money aren’t making as much money.”

Massad added that many companies used to publish their recurring annual revenue figures every week, “and now they no longer do that.”

Navrina Singh, founder and CEO of startup Credo AI, which helps companies monitor AI and manage risk, sees more excitement than fear.

“I don’t think we’re in a bubble,” she said. “I really think this is the new reality of the world we live in. And as we know, AI is going to be and is already the biggest driver of growth for companies. So it makes sense that there should be more investment, not just on the capabilities side and the governance side, but on the energy and infrastructure side as well.”

Watch this video to learn more.