Startup bets that investors want to trade compute like a commodity
Summary
Ornn, a startup backed by Andreessen Horowitz, raised $33 million to create a marketplace where computing power—used in AI—can be traded like a commodity such as oil. The company aims to help investors and AI firms manage the costs of computing by offering ways to buy, sell, and hedge computing power more efficiently.Key Facts
- Ornn raised $33 million in a seed funding round.
- The startup wants to build a market for trading AI computing power similar to commodity markets.
- Commodity markets help companies lock in prices for materials like oil or metals to reduce financial risk.
- Currently, AI companies mostly secure computing power through long-term purchase agreements.
- Goldman Sachs estimates $7.6 trillion will be spent globally on computing and data centers from 2026 to 2031.
- Computing power differs from traditional commodities because it cannot be stored and loses value as new technology appears.
- Ornn’s platform helps lenders benchmark prices and lets buyers and sellers hedge against price changes.
- Futures contracts for compute power are planned by major exchanges but still need regulatory approval.
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