JANE STREET AND RIVALS ARE NOW FIGHTING FOR AI POWER AS WELL AS PACE

Summary from the TLDR newsletter

High-frequency traders are now racing for compute. They are investing in the sector as it secures them access to greater processing capacity and faster chips. These firms primarily profit from tiny price differences as they move rapidly in and out of positions. As they increasingly rely on machine learning, their success is directly tied to their computing power. While the risks are significant, most high-speed traders see few options if they want to avoid becoming obsolete.