I've been pronouncing it with the short 'i' for 30 years, but mainly, possibly only, in my head.
In 1998 I started a new job, and my boss pronounced "URL" as "earl". That threw me for a loop, had to fight my way through our first conversation before I figured out what he was saying.
I pronounce API as "appy", which sometimes draws quizzical looks (people think I'm using next-level cutesy slang for "application"). But I never could do the "earl" thing. Or "sequel".
