Silicon Data Raises $30M and Aims for a Computing Index at CME

The startup specializing in computing power markets plans to launch futures trading at the CME on October 5, pending approval. It aims to provide a reference price for GPU rentals, as compute has become the primary expense for AI and remains difficult to price or hedge.

Target Launch at CME on October 5, Pending Approval

Silicon Data plans to launch futures trading on computing power at the CME on October 5, subject to regulatory approval. The company wants these contracts to be backed by an index it would provide, serving as a reference for settlement in financial markets.

High Compute Costs and Lack of Hedging Tools

Computing power currently represents the main cost for players developing AI products, while there is no simple method to price it or any solution allowing companies to hedge against its fluctuations. Investments in data centers and GPUs reach hundreds of billions of dollars each year in a sector that continues to grow. Meanwhile, some media reports mention the depreciation of chips and idle data centers.

$30 Million Raised and Ambition for a GPU Reference Price

Silicon Data has completed a $30 million Series A funding round. The company aims to establish a reference price for GPU rentals and become the benchmark index for computing power markets. Steve Hou, head of research at Silicon Data, speaks about the current dynamics of the rise of AI and data infrastructures, which he believes differ from the pessimistic narratives reported by some media outlets.