US CFTC seeks comment on compute derivatives as AI demand grows

Aug 19 (Reuters) - 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.

• 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.

(Reporting by Manya Saini in Bengaluru; ​Editing by Tasim Zahid)