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The explosive growth of Artificial Intelligence (AI) has fundamentally redefined computational power, or "compute," as a critical, high-stakes economic input. This resource is characterised by high volatility, massive capital requirements, and rapid technological deflation, necessitating the immediate creation of sophisticated financial instruments for risk transfer and price discovery. Analogies drawn between the need for a compute market and the established infrastructure governing critical resources such as oil and radio spectrum underscore the urgency of this development.
Currently, AI infrastructure users and providers face significant unhedged exposure to price fluctuations and technological obsolescence. The path to viability for a standardised derivative market hinges on overcoming the physical heterogeneity of hardware through the creation of a fungible standard: the Quality-Adjusted Compute Unit (QACU).
By AdrianSend us a text
The explosive growth of Artificial Intelligence (AI) has fundamentally redefined computational power, or "compute," as a critical, high-stakes economic input. This resource is characterised by high volatility, massive capital requirements, and rapid technological deflation, necessitating the immediate creation of sophisticated financial instruments for risk transfer and price discovery. Analogies drawn between the need for a compute market and the established infrastructure governing critical resources such as oil and radio spectrum underscore the urgency of this development.
Currently, AI infrastructure users and providers face significant unhedged exposure to price fluctuations and technological obsolescence. The path to viability for a standardised derivative market hinges on overcoming the physical heterogeneity of hardware through the creation of a fungible standard: the Quality-Adjusted Compute Unit (QACU).