tech
Meet the startup helping Wall Street put a price on AI compute
Watch as Silicon Data's Steve Hou joins the Equity podcast to break down the index tracking what it costs to rent a GPU.
TL;DR
- Compute has become the biggest cost for AI product development due to significant spending on data centers and GPUs.
- There is currently no straightforward way to price compute or for firms to hedge against price changes.
- Silicon Data has secured $30 million in Series A funding to establish a reference price for GPU rental.
- The startup aims to create an index that could be used for Wall Street futures contracts.
- Silicon Data plans to launch compute futures trading on the CME on October 5th, subject to regulatory approval.
- Steve Hou, head of research at Silicon Data, discussed the AI buildout's health and challenged negative headlines about chip depreciation.