I (and others) have been going on about how AI needs a forward curve and futures. The question is if it lives at the hardware compute level or the actual software token consumption level. In the energy markets, there's what's known as the 'crack' spread between petroleum and downstream derivativ
The article discusses the need for a forward curve and futures market for AI, comparing it to energy market crack spreads.
I (and others) have been going on about how AI needs a forward curve and futures. The question is if it lives at the hardware compute level or the actual software token consumption level. In the energy markets, there's what's known as the 'crack' spread between petroleum and downstream derivativ
Inference token costs have been proposed as an alternative to GPU hours as the hedgeable unit of compute for futures and options, but no token index currently offered is viable for US-regulated futures markets due to manipulability. Inference tokens are a potential basis for compute futures and opt
Agreed. I also think it's highly unlikely you can build a forward curve based on financial speculation alone. Forwards almost always require naturals which means there needs to be a version of physical settlement as closely as possible- some thoughtful players working currently trying to close that