There's definitely a cooling off going on with regard to AI and it's spread from the Asian markets, recently hit Europe and has now reached NY. I think the driving force is perhaps concern with an immediate ROI, especially considering the massive investment involved with AI and the associated energy concerns, which is something that needs to catch up. Investors want quantifiable profits, not hype and I would argue that there is certainly a lot of hype surrounding AI.
There's also the SPACEX IPO to consider, because of the way it is setup and the rapid inclusion into indexes, it essentially forced the big institutions to fund their allocations and the high value tech funds were the prime choice to do so.
At the moment I'm not seeing it as panic, but more a correction and investors redistributing and balancing out their portfolios. A lot of the tech funds may suddenly look like they are a bad investment because of the recent volatility, but when you look at their longer term growth compared to many other sectors, many will have still performed admirably.