US CFTC seeks comments on compute derivatives amid growing AI demand

The U.S. Commodity Futures Trading Commission said on Wednesday it was seeking public ​comment on compute derivatives contracts, as the ‌AI boom drives demand for new market products tied to computing power.

The request is an early step by ​the derivatives regulator toward setting rules ​for markets that could help companies and ⁠investors manage the cost and availability of ​compute, a critical input for artificial intelligence.

Here are ​some details:

• Wall Street investors have chased the AI trade for years, betting on companies and assets poised ​to benefit from the technology's rapid adoption.

• The ​derivatives regulator said it is seeking comments on compute cash ‌markets, ⁠market oversight and manipulation concerns, customer protection and perpetual compute futures.

• "America cannot win the AI race without a robust derivatives market for ​compute," CFTC ​Chairman Michael ⁠Selig said in a statement.

• "This request for comment is the first ​step toward establishing clear rules of ​the ⁠road for American compute markets," he added.

• The rapid expansion of AI has increased demand for computing ⁠power, ​prompting questions about how ​companies can hedge exposure to compute costs and availability.

Reuters

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