Meet the startup helping Wall Street put a price on AI compute
The AI buildout shows no signs of slowing. And with hundreds of billions of dollars a year going into data centers and GPUs, compute has become the single biggest cost for anyone building AI products. But for all that spending, there still isn’t a straightforward way to put a price on compute — or for firms to hedge their exposure when the price changes. Silicon Data […]
The AI buildout continues to accelerate, with enormous sums of money flowing into data centers and graphics processing units (GPUs) every year. However, the escalating costs associated with compute resources have left a significant gap in the market – there is no standardized pricing mechanism or hedging tool for firms dealing with the fluctuating costs of AI product development.
Startup Silicon Data has recently secured $30 million in Series A funding to address this issue. The company aims to establish a benchmark price for GPU rental and create an index that would serve as the basis for a Wall Street futures contract. CME Group plans to introduce compute futures trading on October 5th, subject to regulatory clearance.
In this episode of TechCrunch's Equity podcast, Rebecca Bellan sits down with Steve Hou, Silicon Data's head of research, to delve into the dynamics of the AI buildout and discuss how the available data paints a more optimistic picture than the prevailing doomsday warnings about declining chip prices and stalled data centers.
Written by urgent.news from TechCrunch's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
