What's Happening
- High-frequency trading firms like Jane Street and Hudson River Trading are spending billions on cloud contracts and data centers to secure AI computing power, Bloomberg reports.
- Jane Street invested $1 billion directly in cloud provider CoreWeave and committed another $6 billion to its computing services.
- Hudson River Trading signed a multiyear deal with CoreWeave and spends $1 billion annually on AI.
- XTX Markets is constructing a data center in Finland, while Jane Street operates a Texas facility housing more than 4,000 Nvidia GPUs.
Why It Matters
The race for AI compute marks a shift in how Wall Street firms gain an edge. Trading algorithms require massive processing power to predict market movements. Firms that fail to secure sufficient hardware risk losing ground to competitors with faster models.
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