How is compute as a commodity/asset class going to look like in the coming years? are there any firms or brokerages that specialise in this? it's a very new market but would like to hear about it's future especially considering the AI/Data Center Boom.
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The concept of "compute" as a commodity or asset class is gaining traction, especially with the AI and data center boom. Based on the most helpful WSO content, here are some insights:
Emerging Market Potential: Compute resources, such as cloud computing power, are increasingly being treated as a tradable commodity. This is driven by the exponential growth in AI, machine learning, and data processing demands. Companies like Amazon (AWS), Microsoft (Azure), and Google (GCP) are already monetizing compute power at scale, and this trend is expected to grow.
Specialized Firms and Brokerages: While traditional brokerages may not yet specialize in compute trading, there are emerging platforms and firms exploring this space. For example, decentralized platforms like Akash Network and Hadean are working on creating marketplaces for compute resources, allowing users to buy and sell excess capacity.
Future Outlook:
Challenges:
In summary, compute as an asset class is still in its infancy but has significant potential to grow, especially with advancements in AI and cloud technologies. Keep an eye on both traditional tech giants and emerging decentralized platforms for developments in this space.
Sources: Physical Trading: Best commodities to be in?, Future of commercial real estate brokerage, Calling out Goofy @CRE and the rest of Wall Street Oasis. Real Estate is the worst asset class going forward., For Reál | The Daily Peel | 1/23/23
Probs too new to be big, will be much larger in future. From what I’ve seen some small prop shops are doing it/preparing for it — would assume a small group at top funds are working on the architecture for it. Very similar to congestion.
This might be a stupid question, but is it too quantitative for a business major to break into? congestion and FTRs are extremely quantitative and I've heard almost all the traders working in it have electrical engineering degrees. Very interested in this asset class and just worried I don't have the skills to break into it.
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