Jensen Huang says AI is short on cash, and futures are slipping again Friday

Nvidia $NVDA CEO Jensen Huang told CNBC on Thursday that money to fund the expansion of AI infrastructure is getting tight, and U.S. stock futures slipped slightly Friday following a tech selloff.

S&P 500 futures slipped 0.28%. Dow Jones Industrial Average futures fell 316 points, or 0.59%, and Nasdaq $NDAQ-100 futures lost 0.1%.

"There's a scarcity of capital. The demand [for] the capital is much greater than the availability of the capital," Huang replied when questioned about neoclouds, a part of the AI buildout. The comments drew attention to a worry that financing, rather than demand, could limit the AI rally, according to CNBC.

CoreWeave stock fell 10% on Thursday and was little changed at the start of Friday's session. According to CNBC, CoreWeave is the data center operator most closely associated with heavy debt financing.

The selloff on Thursday sent the Nasdaq Composite down 2.6% and the S&P 500 down 1.2%. The S&P 500 suffered its steepest one-day drop since July, while the Nasdaq's decline was its sharpest since June, according to CNBC. The Dow closed higher.

The U.S. tech sector fell 3% on Thursday. Nvidia stock fell 4.4%, Alphabet $GOOGL stock fell 3.2% and Advanced Micro Devices stock fell 8.1%. The Philadelphia Semiconductor Index shed 6.7%, a bigger one-day fall than any since June, according to CNBC.

Chip stocks recovered some ground Friday, with Micron $MU and Nvidia shares trading higher. Shares of Microsoft $MSFT and Meta $META were lower in early trading.

The 10-year Treasury yield rose 1 basis point to 4.9697%. West Texas Intermediate futures rose 1.4% to $100.90 a barrel, and Brent crude rose 0.75% to $114.

For the week, the S&P 500 is on track for a gain of less than 0.1%, and the Nasdaq is down 0.5%. The Dow is tracking a 1.7% advance. Traders are now looking ahead to the University of Michigan's final consumer sentiment reading.