For many years, companies have relied on futures markets to hedge against uncertainty airlines manage fuel costs, farmers protect crop prices, and manufacturers secure metals.
Now, a new startup aims to bring that same financial approach to artificial intelligence.
Silicon Data, a firm that monitors pricing across cloud providers and GPU marketplaces, has teamed up with CME Group to develop what could be the world’s first futures contracts linked to the computational power required for AI. These contracts would enable companies to hedge against fluctuations in the costs associated with training and deploying AI models. Regulatory approval is still pending.
Initial indications show growing investor interest. Shortly after the announcement, asset managers like ProShares and Rex Shares submitted proposals for exchange-traded funds based on these contracts, including leveraged and inverse options.
The CEO of Silicon Data, Carmen Li, believes this market has the potential to become as significant as some of the largest commodity markets worldwide.
Source (CNBC)
