NEW YORK, Feb 27, 2026, 10:02 EST — Regular session
- Microsoft shares slipped 2.36% to $392.22 early, bouncing between $390.00 and $394.17 so far.
- OpenAI has announced a $110 billion funding round, putting the ChatGPT maker’s valuation at $840 billion. Amazon is stepping up its presence in the AI cloud arena.
- Japan’s regulator has raided Microsoft Japan, scrutinizing Azure’s business practices. On another front, U.S. policymakers are now zeroing in on the power bills at data centers.
Shares in Microsoft Corp slipped over 2% Friday morning, as the company faced new turbulence in the AI sector and regulators turned up the heat on its cloud operations. By 9:45 a.m. EST, the stock had dropped 2.36% to $392.22, erasing a small 0.3% gain from Thursday’s close. Microsoft opened at $390.64, with trades ranging from $390.00 to $394.17 in the early session. 1
Timing is coming into play. The recent AI boom has put big tech under renewed scrutiny, with investors weighing just how fast all this artificial-intelligence investment will actually pay off. On Friday, Wall Street slipped at the open, and the Nasdaq was staring down its sharpest monthly loss since March 2025—hardly ideal for the sector’s heavyweights as risk appetite fades. 2
Inflation was no ally here. The U.S. producer price index rose 0.5% in January, outpacing the 0.3% gain economists had penciled in. Some details pointed to core PCE inflation — the Fed’s go-to metric — possibly jumping by as much as 0.5% for the month. That official figure lands March 13. 3
OpenAI on Friday said it’s pulling in $110 billion in a funding round that puts the ChatGPT creator’s valuation at $840 billion. Investors include SoftBank, Nvidia, and Amazon.com. Amazon is putting in $50 billion, with AWS set to become the exclusive third-party cloud provider for OpenAI Frontier—the company’s enterprise AI agent platform. OpenAI emphasized the arrangement doesn’t alter its relationship with Microsoft. Microsoft Azure still holds the exclusive cloud slot for OpenAI’s APIs, and Microsoft retains its exclusive license plus access to OpenAI’s intellectual property. 4
Regulators in Japan are turning up the heat on Microsoft’s cloud operations. The country’s Fair Trade Commission searched Microsoft Japan’s offices, investigating allegations that Azure may have blocked customers from turning to competing cloud providers, according to someone familiar with the probe. “We are fully cooperating with the JFTC in their requests,” a Microsoft Japan spokesperson said. 5
The White House plans to bring major data-center and AI players together on March 4, aiming to lock in a pledge that would limit consumer exposure to power bill hikes. Microsoft, Amazon, Anthropic, and Meta Platforms are all set to participate. “We appreciate the Administration’s work to ensure that data centers don’t contribute to higher electricity prices for consumers,” Microsoft Vice Chair and President Brad Smith said. But for Harvard’s Ari Peskoe, unless the plan includes contracts that shift costs directly onto the projects, it’s “meaningless.” 6
Policy jitters are hitting a stock that’s already working its way back from an AI-driven investor shakeout. Back in late January, Microsoft reported record artificial intelligence spending and flagged weaker cloud-computing growth, unsettling investors. 7
Volatility gripped the wider AI sector again. Nvidia tumbled 5.5% Thursday, erasing roughly $260 billion in market cap—its steepest single-day loss since April. All it took was a shift in mood, despite solid earnings. 8
No single news item defines Microsoft right now—it’s the accumulation: tougher cloud rivals, regulators poking at cloud licensing, and spiking electricity bills for data centers. These factors won’t show up as neat line items, but they’re influencing the risk premium investors are looking for.
Even so, the outcome’s far from clear. Japan’s raid doesn’t promise enforcement that will hit sales, and the U.S. commitment on power costs might end up toothless if there’s nothing binding. But if investigations pick up steam or cost pressures don’t ease, investors could keep holding back on growth names.
Eyes are on Japan’s regulator for possible next steps tied to Azure practices, while market players await fallout from the March 4 White House meeting—any shifts there might ripple through data-center economics. Looking ahead, March 13 looms as the next key date: the PCE inflation report lands, a potential pivot point for rate-cut wagers and sentiment around mega-cap tech.
