Silicon Data

Ornn, an Andreessen Horowitz-backed startup, raised $33 million to create a marketplace for trading AI compute power as a commodity. The initiative aims to make AI development more sustainable by enabling price hedging and benchmarking, with Goldman Sachs projecting $7.6 trillion in global compute investments by 2031. Challenges include compute's non-static nature and lack of storage, but Ornn partners with Bloomberg Terminal and faces potential regulatory futures markets.

New AI technology, including Nvidia's Blackwell systems, is expected to significantly increase efficiency and reduce AI token prices. Companies like OpenAI and Silicon Data have noted declining token costs, with a spending index showing a drop from 2.06 to 1.75 in early June. Unnamed AI infrastructure firms also predict cheaper tokens due to improved models later this year.

Wall Street is developing a market for AI compute as a financial asset, with Silicon Data CEO Carmen Li explaining how AI futures may rival oil futures in importance. Companies are hedging against rising GPU costs, and AI token prices continue to rise despite advancements in model efficiency.

Financial institutions and startups are developing a futures market for AI compute power, likened to oil trading, as demand for GPUs like Nvidia's Blackwell chip surges. ICE and CME Group plan GPU futures, with proponents claiming it could rival the $6 trillion energy market.