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Nvidia Shares Dip as OpenAI Mega-Investment Faces Scrutiny

By
Samuel Nwite
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0

Nvidia shares slipped in premarket trading on Monday after fresh reports cast doubt on the size and certainty of the chipmaker’s much-publicized plan to invest up to $100 billion in OpenAI.

The semiconductor giant’s stock was down about 1.5% as of 8:47 a.m. ET, following a Wall Street Journal report late Friday that said Nvidia’s plans to make the enormous investment had effectively stalled amid internal uncertainty. The report cited people familiar with the discussions.

The dip underscores growing investor sensitivity to how far — and how fast — spending in the artificial intelligence sector can realistically go.

Nvidia and OpenAI announced in September a sweeping strategic agreement under which Nvidia would help build at least 10 gigawatts of computing infrastructure for OpenAI, an unprecedented scale of AI capacity, alongside a potential equity investment of up to $100 billion. The announcement was widely interpreted as a bold signal of Nvidia’s confidence in OpenAI and of the seemingly limitless appetite for computing power to train and run advanced AI models.

However, according to the Wall Street Journal, Nvidia chief executive Jensen Huang has since sought to reframe expectations. The report said Huang told industry associates late last year that the $100 billion figure was non-binding and not finalized, while privately voicing concerns about OpenAI’s business discipline and the intensifying competitive landscape, particularly from Alphabet’s Google and fast-rising rival Anthropic.

Those details unsettled investors, not because Nvidia appears to be pulling back from artificial intelligence, but because they introduced uncertainty around what had been treated as a near-guaranteed, headline-grabbing commitment. Markets have increasingly rewarded clarity and penalized ambiguity as AI investments balloon into tens of billions of dollars.

Over the weekend, Huang publicly rejected the suggestion that relations between Nvidia and OpenAI had soured. Speaking during a visit to Taipei, he dismissed reports of friction as “nonsense” and reaffirmed Nvidia’s intention to invest heavily in the AI company, while stopping short of endorsing the original $100 billion figure.

“We are going to make a huge investment in OpenAI,” Huang said in comments reported by Bloomberg. “I believe in OpenAI. The work that they do is incredible. They are one of the most consequential companies of our time, and I really love working with Sam.”

Referring to OpenAI chief executive Sam Altman, Huang added, “Sam is closing the round, and we will absolutely be involved. We will invest a great deal of money, probably the largest investment we’ve ever made.”

Crucially, Huang declined to specify an amount, saying it was up to Altman to announce the size of the funding round. He also reiterated that Nvidia’s investment would not exceed $100 billion, effectively reframing the figure as a ceiling rather than a commitment.

That nuance appears to be at the heart of Monday’s market reaction. Sarah Kunst, managing director at Cleo Capital, said on CNBC’s “Worldwide Exchange” that investors were reacting to the uncertainty rather than to the idea of Nvidia investing in OpenAI.

“One of the things I did notice about Jensen Huang is that there wasn’t a strong, ‘It will be $100 billion,’” Kunst said. “It was, ‘It will be big. It will be our biggest investment ever.’ And so I do think there are some question marks there.”

She added that the public nature of the back-and-forth was unusual. “That kind of back and forth isn’t normal between an investor and a startup to play out in the media,” she said, noting that it may have amplified market unease.

The episode highlights a broader shift in how investors are viewing the AI boom. After a year of soaring valuations driven by expectations of explosive, near-unlimited spending on AI infrastructure, markets are beginning to scrutinize the sustainability, governance, and returns of those investments more closely.

Nvidia sits at the center of that debate. Its chips underpin much of the generative AI revolution, and OpenAI remains one of its most important customers. Any suggestion that Nvidia is applying greater caution to its largest prospective deal inevitably raises questions about whether AI spending is entering a more measured phase.

At the same time, even a significantly smaller investment would still rank among the largest technology funding rounds in history. The Wall Street Journal reported in December that OpenAI is seeking to raise as much as $100 billion, while The New York Times said this week that Nvidia, Microsoft, Amazon, and SoftBank are all in discussions about potential participation.

Thus, Nvidia’s strategic logic of deepening ties with OpenAI remains intact: securing long-term demand for its chips, reinforcing its dominance in AI infrastructure, and maintaining close alignment with one of the most influential AI developers in the world. But Monday’s stock move suggests investors are increasingly focused on the fine print — weighing whether today’s ambitious projections will translate into durable and disciplined growth.

Robert Kiyosaki Calls Bitcoin’s Decline A ‘Sale’, Reveals Plans to Buy More

By
Ojukwu Emmanuel
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0

American businessman, entrepreneur, and author, known for his Rich Dad Poor Dad book, Robert Kiyosaki, has described the recent decline in Bitcoin and other key assets as a buying opportunity rather than a setback.

The renowned author said the sell-off in Bitcoin, gold, and silver signals a “sale” in the financial markets, revealing that he is holding cash and preparing to accumulate more of the assets.

In a post on X, he wrote,

“When Walmart has a SALE poor people rush in and buy, buy, buy. Yet when the Financial Asset Market has a sale, a.k.a CRASH, the poor sell and run while the rich rush in and buy.

“The gold, silver, and Bitcoin market just crashed a.k.a. went on sale and I am waiting with cash in hand to begin to buying more gold, silver, and Bitcoin on sale.”

Over the weekend, financial markets delivered a sharp reminder that even the strongest assets can go on deep discount. Gold fell roughly 7–8%, silver dropped close to 14%, and Bitcoin plunged more than 10% from recent highs, briefly dipping below $75,000.

The moves erased hundreds of billions in market value across crypto and triggered significant corrections in precious metals that had enjoyed strong year-to-date performance until this point.

While many investors panic at the ongoing market bloodbath, Kiyosaki sees something very different, a massive buying opportunity.

His analogy resonates with a well-known behavioral finance pattern. Retail sales trigger excitement and impulse purchases because the perceived value is immediate and tangible lower price on something people already want.

Financial assets, however, trigger fear when prices drop. Most people sell to stop the bleeding, locking in losses. However, Kiyosaki post drew sharp criticism. Some accused him of recycling the same “crash is coming / buy the dip” narrative he has repeated for more than a decade, calling it motivational content designed to drive engagement and book sales rather than actionable insight.

As of February 2, 2026, Bitcoin is currently trading around $79,000 after bouncing roughly 7% from weekend lows near $74,800–$75,000. Still down more than 10% week-over-week and well below the recent peak above $96,000.

Gold is down significantly from recent highs (estimates range from $4,500–$4,600 per ounce after losing 7–8% in the move). Silver suffered the steepest percentage decline, falling nearly 14% and erasing a large portion of earlier 2026 gains.

Despite the severity of the pullback, many analysts note that corrections of 10–25% are historically normal, even healthy in bull markets for both precious metals and Bitcoin.

The weekend sell-off may be remembered as noise in a longer bull trend or as the beginning of something more serious. Either way, Robert Kiyosaki has already chosen a path.

His comments reinforce his long-standing belief that market downturns reward patient investors who understand the difference between consumer spending and asset accumulation.

Looking ahead, the near-term outlook for Bitcoin, gold, and silver remains mixed, with volatility likely to persist. Macroeconomic uncertainty, shifting interest rate expectations, and investor sentiment continue to drive sharp price swings across both digital and traditional assets.

In the short run, further downside cannot be ruled out, especially if broader risk markets weaken or liquidity tightens. However, from a medium- to long-term perspective, many analysts argue that the structural case for Bitcoin and precious metals remains intact.

Whether this recent decline marks a temporary correction or the early stages of a deeper downturn will depend largely on macroeconomic data, policy decisions, and investor confidence in the coming weeks.

For now, the market appears divided between fear-driven sellers and conviction-driven buyers, embodying the very contrast Robert Kiyosaki highlighted in his remarks.

India Sets Record $187.6bn Borrowing Plan in FY2026–27, Raising Stakes for Bond Markets and RBI Support

By
Samuel Nwite
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0

India’s federal government has unveiled a record borrowing plan for the 2026–27 fiscal year, underscoring both its push to accelerate economic growth through manufacturing and the mounting pressure on domestic bond markets already grappling with heavy debt supply.

In her annual budget speech on Sunday, Finance Minister Nirmala Sitharaman said the government will borrow 17.2 trillion rupees ($187.6 billion) in gross terms in the next fiscal year, which runs from April 2026 to March 2027. That figure marks a 17% increase from the 14.61 trillion rupees planned for the current fiscal year and exceeds most market expectations.

Net borrowing is also set to rise, to 11.73 trillion rupees from 11.33 trillion rupees this year, reflecting the government’s continued reliance on debt even as it commits to fiscal consolidation over the medium term.

The borrowing numbers came in above the median estimate of 16.3 trillion rupees in a Reuters poll of 35 economists, and toward the upper end of forecasts that ranged from 16 trillion to 17.5 trillion rupees. The surprise has heightened concerns in financial markets about the government’s ability to place such a large volume of bonds without pushing yields even higher.

Government bond yields have already been under upward pressure for months, as borrowing by both the federal government and Indian states has outpaced demand. Traders say the new borrowing plan risks exacerbating that imbalance. With bond markets closed on Sunday, attention has shifted to Monday’s reopening, when the benchmark 10-year yield is expected to face fresh upward pressure.

Market participants warn that the scale of issuance could keep yields elevated, even after unprecedented intervention by the Reserve Bank of India. In recent months, the RBI has stepped in with record open market bond purchases and foreign-exchange swaps to inject liquidity and stabilize the market.

“The overall gross and net borrowing numbers, along with the lack of any specific measures to address demand for bonds, will clearly weigh on the market,” said Rajeev Radhakrishnan, fixed income chief investment officer at SBI Mutual Fund.

He added that near-term bond market stability will continue to depend heavily on the central bank’s operations to anchor yields.

“The borrowing remains a challenge and could keep yields elevated relative to underlying macroeconomic numbers,” Radhakrishnan said.

The borrowing plan sits alongside a budget that doubles down on local manufacturing as a growth engine for Asia’s third-largest economy, at a time of global volatility and slowing external demand. Sitharaman framed the strategy as a necessary bet to strengthen domestic supply chains, attract investment, and protect India’s growth momentum from global shocks.

At the same time, the government is attempting to balance stimulus with fiscal discipline. New Delhi has shifted its fiscal framework toward targeting the debt-to-GDP ratio rather than focusing solely on the annual deficit. Under the new plan, the government aims to reduce its debt-to-GDP ratio to 55.6% in the next fiscal year, which translates into a fiscal deficit of 4.3% of gross domestic product.

The fiscal deficit, which measures the gap between government spending and revenue, is closely watched by investors and ratings agencies for its implications for borrowing needs, debt sustainability, and market confidence. While the deficit target signals an intent to rein in public finances over time, analysts note that the near-term borrowing burden remains heavy.

For bond investors, the central question is whether demand — from banks, insurers, foreign investors, and the RBI itself — can absorb the record supply without a sharp rise in yields. Higher yields would increase the government’s interest costs and could spill over into broader borrowing costs for companies and households, potentially complicating the growth push the budget is designed to support.

As trading resumes, markets are expected to scrutinize not just the headline borrowing figures, but also signals from the RBI on how aggressively it is willing to intervene to prevent a disorderly rise in yields. But what India’s budget has made clear for now is that growth ambitions and fiscal consolidation will have to coexist with record levels of government borrowing.

True Diversification Goes Beyond Buying a Handful of ETFs 

By
Paul Ugbede Godwin
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0

True diversification goes far beyond simply buying a handful of ETFs, even if they’re popular ones like broad stock or sector funds.

Many investors mistakenly think holding 3–5 ETFs across major indices provides robust protection, but that often results in overlapping exposures, especially heavy concentration in large-cap US equities or similar risk factors.

Why “a few ETFs” often falls short of real diversification. Many ETFs track similar benchmarks like S&P 500, total US market, or even “global” funds with heavy US weighting, so your portfolio can still behave like one big bet on US growth stocks, tech, or correlated assets.

In market stress like 2022’s simultaneous equity and bond declines, correlations rise, and superficial spreads don’t help much. Limited asset classes mean missing uncorrelated or low-correlation sources of return.

What “global, multi-asset, disciplined diversification” really means. This approach aims for genuine risk reduction and potentially smoother returns by spreading exposure across truly distinct drivers.

Not just US-heavy, but meaningful allocations to developed international markets (Europe, Japan), emerging markets (China, India, etc.), and frontier regions where economic cycles differ from the US. Multi-asset ? Beyond stocks and basic bonds: Include a mix like: Equities (large/small cap, value/growth, sectors).

Fixed income (government, corporate, high-yield, inflation-linked, emerging debt). Alternatives (real estate/REITs, commodities, infrastructure, hedge fund-like strategies if accessible). Sometimes currencies, volatility strategies, or private assets for institutions.

Disciplined ? Not random or emotional adjustments: Rules-based or systematic allocation (e.g., target weights rebalanced periodically). Volatility targeting, dynamic shifts based on valuations/macro conditions. Grounded in historical data showing low correlations and better risk-adjusted outcomes over long periods. Avoid overcomplication — focus on cost-effective implementation (low-fee ETFs/funds where possible).

This is the philosophy behind many multi-asset strategies, diversified growth funds, or all-weather portfolios popularized by firms like Bridgewater, Ray Dalio’s ideas, or various institutional approaches. Recent outlooks emphasize this in volatile, high-valuation environments: favor disciplined multi-asset approaches to navigate uncertainty, capture income, and regain diversification benefits when single-asset bets falter.

In short, the goal isn’t to own “everything” — it’s to own things that don’t all sink or swim together. A few broad ETFs can be a solid start for simplicity, but layering in global reach, varied asset classes, and consistent discipline takes it to a more resilient level.

Gold plays a pivotal role in true, disciplined diversification — especially in a global, multi-asset portfolio — because it often behaves differently from traditional stocks and bonds, providing a hedge against risks that equities and fixed income can’t always cover.

Why Gold Enhances Diversification

Gold’s primary value isn’t chasing high returns every year, it doesn’t generate income like dividends or interest, but in its low or negative correlations to other major asset classes during key periods.

Stocks: Historically near zero over long periods often 0 to 0.2 long-term, sometimes negative in stress. Recent data shows occasional positive correlations like the trailing 12-month around 0.8 in late 2025, but gold typically decouples or rises when equities fall — acting as a “left-tail” hedge during market crashes, inflation shocks, or bear markets.

Bonds often inverse to real yields; gold rises when real yields fall, but less correlated than stocks/bonds to each other in high-inflation or uncertain regimes. When stock-bond correlations rise as seen post-COVID and in recent years, gold helps reduce overall portfolio volatility.

This low correlation improves risk-adjusted returns: Studies from World Gold Council, Northern Trust, 50-year analyses show adding gold reduces drawdowns, smooths volatility, and boosts Sharpe ratios without sacrificing too much upside in bull markets.

Gold shines in three main ways: Inflation hedge — Preserves purchasing power when currencies debase or prices rise persistently.
Geopolitical and tail-risk insurance — Performs well amid uncertainty, wars, trade tensions, or dollar weakness (central banks’ massive buying reflects this structural shift).

Especially relevant with high global debt, fiscal deficits, and de-dollarization trends. In 2025, gold delivered exceptional returns over 50-60% in many measures, its strongest since 1979, outperforming equities, bonds, and most assets. This came amid persistent inflation concerns, geopolitical risks, Fed policy shifts, and record central bank and ETF demand.

It provided meaningful diversification benefits: low correlations to major classes helped portfolios weather volatility where traditional 60/40 setups struggled. As of early 2026, the outlook remains constructive — many forecasts see gold consolidating higher driven by ongoing diversification demand from central banks, investors, and structural factors like elevated debt and uncertainty.

Experts from World Gold Council, Northern Trust, J.P. Morgan, UBS, etc. commonly recommend 3–10% exposure to gold as a strategic, long-term holding: 3–5% for modest diversification and inflation/geopolitical protection.

8–10% or higher in volatile/inflationary periods to meaningfully enhance efficiency and hedge “fat-tail” risks. Implement via low-cost vehicles: physical-backed ETFs (e.g., GLD), futures, or mining stocks for added leverage though higher volatility.

Gold isn’t a replacement for equities (growth engine) or bonds (income/stability), but a complement that makes the whole portfolio more resilient — aligning perfectly with global, multi-asset discipline.

Many investors remain under-allocated, even after 2025’s rally, viewing it as “portfolio insurance” rather than a momentum trade.In today’s environment — with elevated valuations, sticky inflation risks, and geopolitical fragility — a modest, rules-based gold allocation fits the “don’t all sink together” principle better than ever.

Review your current setup: Does it have meaningful exposure to this uncorrelated driver? If you’re building or reviewing a portfolio, consider your risk tolerance, time horizon, and costs — and whether your current setup truly has low-correlation exposures beyond equities.

Hyperliquid Actively Testing Native Prediction Markets 

By
Paul Ugbede Godwin
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0

Hyperliquid is actively testing native prediction markets on its testnet as of early February 2026.

This is a recent development generating buzz in the crypto community, particularly around leveraging Hyperliquid’s high-performance L1 infrastructure with on-chain order books, low fees, and deep liquidity to bring prediction markets on-chain in a more efficient way.

This builds on Hyperliquid’s HIP-3 framework, which enables permissionless deployment of perpetual markets. Builders can create “prediction perps” (leveraged perpetuals tied to event outcomes) as native markets on the chain, rather than relying on separate AMM-based systems.

A leveraged, trader-focused prediction market platform using HIP-3. It emphasizes fast resolution, high liquidity, and focuses on macro/crypto events and major global outcomes. It’s currently live on testnet for users to test features, with potential rewards for early activity ahead of mainnet.

Testnet site includes faucet for test tokens and event trading. Other builders and community projects like HyperOdd for leveraged event perps, HyperMarkets via TickerTerminal on HyperEVM are also experimenting with prediction-style markets or perps on the testnet.

Hyperliquid’s core strengths—near-instant settlement, high throughput (20K+ ops/sec), and on-chain liquidity—could make prediction markets more scalable and capital-efficient compared to platforms like Polymarket which often face liquidity or resolution issues. Community sentiment sees this as potentially dominant for 2026, combining perps dominance with prediction markets.

This is still in testnet phase not mainnet yet so it’s for testing/exploration with test tokens. Community posts on X highlight excitement, with some calling it “explosive” for liquidity + smart users + builders. If you’re interested in trying it, connect an EVM-compatible wallet to the testnet, claim faucet tokens and trade demo markets—gasless in many cases.

This positions Hyperliquid to expand beyond pure perps into broader on-chain finance, including event-based trading. Mainnet rollout for these features could be a big catalyst for $HYPE. The testing of native prediction markets on Hyperliquid’s testnet represents a significant expansion beyond its core perpetual futures dominance.

This leverages the HIP-3 framework, which enables permissionless deployment of custom perpetual markets—including “prediction perps” (leveraged perpetuals tied to binary or event outcomes like elections, economic data, crypto milestones, or macro events).

HIP-3 already allows builders to launch perps on virtually any asset or event by staking HYPE with recent milestones like $1B+ open interest and massive volumes in commodities like gold/silver. Adding native prediction markets turns Hyperliquid into a unified on-chain venue for derivatives and event-based trading.

This could create massive network effects: deeper liquidity from cross-pollination e.g., traders using perps for hedging prediction positions, higher capital efficiency, and stickier users who prefer one high-performance platform over fragmented alternatives like Polymarket (AMM-based, slower resolution, Polygon-dependent) or centralized books.

Competitive Edge Over Prediction Market Leaders

Platforms like Polymarket face liquidity fragmentation, resolution disputes, and scalability limits. Hyperliquid’s strengths—on-chain central limit order book (CLOB), sub-second execution, near-zero fees, high throughput (~20K ops/sec), and deep stablecoin liquidity—could make prediction markets more trader-friendly with leverage, tighter spreads, and instant settlement.

Early testnet projects like Outcome focus on leveraged, fast-resolving markets for macro/crypto events, with testnet faucets and potential mainnet rewards for testers. Others (e.g., HyperMarkets via TickerTerminal on HyperEVM) experiment with gamified, short-term binary bets.

If mainnet succeeds, this positions Hyperliquid to capture share from Polymarket while attracting new users interested in real-world events without KYC or bridging hassles. HIP-3 markets generate fees shared between deployers (50%) and the protocol (50% for buybacks/burns).

Prediction markets could drive explosive volume—prediction perps often see high turnover during volatile events (e.g., elections, Fed decisions). Combined with Hyperliquid’s existing ~$600M+ annualized revenue from perps (no emissions, strong buybacks via assistance fund), this expands the flywheel: more markets ? more liquidity ? more traders ? higher fees ? stronger HYPE demand.

Community sentiment highlights this as potentially “explosive” for 2026, especially if it draws institutional or macro traders seeking decentralized exposure to non-crypto events. This tests Hyperliquid’s path toward becoming a full “on-chain financial landscape”—from perps to lending, stablecoins (USDH growth), and now event derivatives.

It democratizes access to markets traditionally gated by TradFi via oracles and permissionless listing. Risks include oracle reliability for resolution, regulatory scrutiny on event contracts, and competition from other L1s, but Hyperliquid’s performance edge and zero-VC, community-aligned model make it resilient.

Early X buzz calls it “real early alpha” and questions why Hyperliquid isn’t top-10 yet despite dominance in on-chain perps (>60% share). Mainnet rollout could catalyze $HYPE currently trading ~$30-33 range per recent data, especially amid broader DeFi growth.

This isn’t just incremental; it’s a step toward Hyperliquid becoming the go-to decentralized venue for any tradeable outcome, amplifying its moat in a world increasingly tokenizing real-world assets and events. If execution matches hype, it could redefine on-chain speculation and drive sustained ecosystem growth.

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