New York, Jan 31, 2026, 12:44 EST — Market closed
- Nvidia CEO Jensen Huang confirmed the chipmaker plans a “huge” investment in OpenAI, pushing back against reports that discussions had hit a dead end.
- Microsoft stayed under pressure following its cloud update, which unsettled investors seeking clearer returns from AI investments.
- Upcoming catalysts: earnings reports from Alphabet and Amazon, along with the U.S. jobs report due Feb. 6.
Investors are digesting a new development in the OpenAI funding battle as Nvidia’s CEO Jensen Huang announced the chipmaker plans a “huge” investment in the maker of ChatGPT. Nvidia closed Friday down roughly 0.7% at $191.13. Reuters
This matters because OpenAI’s latest cash raise signals more than just startup turbulence. It offers a glimpse into the entire artificial intelligence (AI) supply chain — revealing who foots the bill for data centers, who scores priority access to chips, and how long Big Tech will keep funding the sector before pushing for bigger returns.
The AI trade stumbled this week, rattled by earnings reports and concerns over rising rates. On Friday, U.S. stocks slid, with the Nasdaq dropping 0.94% as investors digested a hawkish tone from the Fed chair nominee alongside fresh inflation data and mixed tech earnings. Microsoft took another hit, falling about 0.8% to close at $430.29 after a steep decline the previous day.
The Wall Street Journal reported Friday that Nvidia’s plan to invest as much as $100 billion in OpenAI has hit a snag, with both sides reconsidering the scope of their partnership. Nvidia said in an emailed statement that it has been OpenAI’s preferred partner for a decade and intends to continue collaborating.
Microsoft’s connection to OpenAI is drawing fresh scrutiny. The company revealed that OpenAI makes up 45% of its cloud backlog — essentially, the pipeline of work yet to translate into revenue. Some investors are now seeing this as a concentration risk rather than a clear edge. “Microsoft’s deep ties to OpenAI underpin its leadership in enterprise AI, but they also introduce concentration risk,” said Zavier Wong at eToro. Reuters
Storage and memory remain a heated segment within the AI sector. Sandisk jumped 6.8% to $576.25 Friday after it forecasted profits and revenue far above estimates and extended its flash-chip supply deal with Kioxia through 2034. Meanwhile, peers showed mixed results: Western Digital slid about 10.1%, and Micron Technology dropped 4.8%.
The calendar remains packed. Roughly a quarter of the S&P 500 companies report next week, including heavyweights Alphabet and Amazon. The U.S. jobs report is set for Feb. 6, with economists surveyed by Reuters forecasting 64,000 new jobs. Jim Baird of Plante Moran Financial Advisors noted, “For those companies where expectations have become very, very lofty, the onus is going to be on them to deliver.” Sid Vaidya at TD Wealth pointed to early earnings indicating AI infrastructure capital spending won’t slow down. Meanwhile, Michael Reynolds of Glenmede said last year’s delayed economic data means jobs and inflation figures could carry “more important than usual” weight. Reuters
Heading into the weekend, AI-related leaders showed mixed moves: Advanced Micro Devices dropped 6.1% to $236.73, Alphabet held steady at $338, and Amazon slipped 1.0% to $239.30. Broadcom, meanwhile, nudged higher by 0.2% to $331.30.
The risk this week is straightforward: spending continues to climb, yet revenue and margin gains come in more modest chunks. If earnings growth proves just “okay,” or a jobs report shakes up rate expectations, traders might quickly pull back—particularly from AI stocks already banking on flawless execution.
Monday’s open will likely depend on whether Nvidia’s role with OpenAI eases concerns or sparks more uncertainty. Investors will then shift focus to earnings from Alphabet and Amazon, followed by the February 6 jobs report. OpenAI’s fundraising developments remain a key factor influencing both the chip and cloud sectors.
