Investor Michael Burry is betting big against the AI boom, and the mood among tech leaders is turning defensive.

• Michael Burry ("The Big Short") is shorting a basket of AI-linked stocks, including Nvidia, Tesla, Palantir, and other chipmakers, calling it a bubble.
• His trigger was a huge new AI investment out of Korea, which he sees as a sign of overheated, circular financing like the dot-com era.
• Many chip stocks and SpaceX fell hard, and the market is swinging wildly up and down.
• Tech leaders like Musk, Snap's CEO, and Palantir's Alex Karp are suddenly talking about "rebuilding trust," a sign people are wary of handing over their data.
• Weakening job numbers and a Facebook whistleblower saying the company puts profits over kids' safety add to the sense that the AI hype is cracking.

Outlook: If the selling keeps up, more air could come out of the most hyped AI and chip stocks in the near term.