Hudson River Trading Inks Multi-Year Cloud Deal With CoreWeave
The trading firm will get access to Nvidia's Vera Rubin and B200 systems, intensifying the AI chip race on Wall Street, as CoreWeave expands its customer base and diversifies revenue
CoreWeave has signed a multi-year cloud deal with Hudson River Trading, giving the trading firm access to Nvidia's Vera Rubin and B200 systems. This move intensifies the race for AI chips on Wall Street, as Hudson River looks to leverage the latest technology to train trading models, test strategies, and search vast datasets for profitable patterns.
The deal is part of CoreWeave's efforts to diversify its revenue and expand its customer base. In addition to Hudson River, CoreWeave has also added trading firms Flow Traders and IMC as customers. This expansion comes after rival Jane Street's $6 billion commitment to CoreWeave's AI cloud and separate $1 billion investment in the company.
Hudson River generated $11.4 billion in second-quarter trading revenue and $7.4 billion in profit, according to a Bloomberg report. The firm's head of research and development, Kevin Lee, stated that giving researchers access to the latest AI technology is crucial for pushing research teams further and faster.
CoreWeave has also validated Nvidia's Vera Rubin NVL72 platform and raised prices approximately 25% in July. The company expects newer contracts to deliver contribution margins 5 to 10 percentage points higher than earlier agreements. Nvidia B200 chips, which Hudson River will also use, currently rent for $6.87 per hour, according to the Ornn index.
## What it means The deal between CoreWeave and Hudson River Trading is significant, as it highlights the growing demand for AI chips on Wall Street. The race for AI chips is intensifying, with companies like Jane Street and Hudson River committing billions of dollars to access the latest technology. CoreWeave's expansion of its customer base and diversification of revenue are also notable, as the company looks to establish itself as a major player in the AI cloud market.
CoreWeave finished the second quarter with approximately 3.7 gigawatts of contracted power capacity. The company's largest customer accounted for 36% of second-quarter sales, while its top three customers generated approximately 72% of its second-quarter sales. As the company continues to grow and expand its customer base, it will be important to monitor its progress and see how it navigates the increasingly competitive AI chip market.
## Why it matters The deal between CoreWeave and Hudson River Trading has significant implications for the AI chip market and the financial industry as a whole. As companies like Hudson River and Jane Street commit to using the latest AI technology, it is likely that we will see increased demand for AI chips and a growing need for companies like CoreWeave to provide access to these chips. This, in turn, could lead to further innovation and advancements in the field of AI, as companies look to leverage the latest technology to gain a competitive edge.
The deal also highlights the importance of access to the latest AI technology for research teams and trading firms. As Kevin Lee stated, giving researchers access to the latest AI technology is crucial for pushing research teams further and faster. This is likely to be a major factor in the growing demand for AI chips, as companies look to stay ahead of the curve and leverage the latest technology to drive innovation and growth.
