The Zhitong Finance App learned that Hudson River Trading (hereinafter referred to as “HRT”) has signed a multi-year agreement with CoreWeave Inc. (CRWV.US) to use the latter's artificial intelligence computing services to build a new transaction research model and system. CoreWeave Chief Revenue Officer Jon Jones (Jon Jones) said in an interview that the multi-billion dollar agreement is a substantial deepening of the existing partnership between the two parties, but declined to disclose specific financial terms. Under the agreement, HRT will be one of CoreWeave's first customers to receive large-scale access to Nvidia (NVDA.US)'s latest Vera Rubin AI chip.
As one of the largest non-bank trading institutions in the US, HRT is increasingly relying on Coreweave and other so-called “neoclouds” (neoclouds) — vendors that provide high-performance cloud computing services specifically for AI workloads. More powerful computing power enables institutions such as HRT to process larger transactions over a longer period of time.
Kevin Lee, head of R&D at HRT, said that more computing resources mean researchers can experiment more and hopefully discover more valuable strategies. In an industry where AI chips are generally unable to reach peak efficiency and many projects are generally delayed, CoreWeave has always delivered on time or even ahead of schedule, and has shown technical advantages in running Nvidia chips efficiently, leaving a deep impression on HRT.
CoreWeave's previous sales depended heavily on Microsoft (MSFT.US), accounting for over 70%, so the company has been actively promoting customer diversification. HRT first became its customer in March of this year. CoreWeave is working to expand its business beyond technology and AI lab customers, with a special focus on financial institution customers. In last week's quarterly earnings report, Coreweave disclosed that its business dealings with HRT are expanding.
Notably, HRT's biggest competitor, Jane Street, is both a supporter and user of CoreWeave technology. Jane Street previously agreed to spend $6 billion leasing CoreWeave's data center capacity and also invested $1 billion in the cloud service provider. According to reports in June, CoreWeave was funding the capacity needs of HRT and its competitor Jane Street through a multi-billion dollar debt loan at the time.
CoreWeave's Jones said, “Many of the leading innovations in the field of cutting-edge models are also taking place in the financial services sector, and HRT is a typical example of this.”