Today's episode, which was recorded at our recent live show at New York's City Winery, follows up on a conversation we had with Iain Dunning, head of AI at Hudson River Trading, last year, in which we talked about how his firm uses AI. Now, some seven months later, we follow up on how one of the biggest market makers around is deploying this technology. We talk about the price of memory, bottlenecks in compute, how much HRT employees are actually spending on tokens, why the firm might develop its own chips, as well as AI-induced delirium. Chapters: 00:00:00 - GPU Infrastructure Constraints Discussion 00:03:35 - AI Implementation at Trading Firms 00:05:14 - AI Progress and "Delirium" Discussion 00:07:16 - AI Applications in Trading 00:08:36 - Model Evaluation and Research Acceleration 00:11:01 - Post-Fundamental Trading Philosophy 00:13:31 - Model Interpretability and Risk Management 00:16:14 - GPU and Data Center Capacity Constraints 00:18:29 - Data Center Sourcing and Commercial Terms 00:20:05 - Counterparty Risk and Creditworthiness 00:21:42 - Custom Chip Development 00:24:07 - Compute Futures Markets 00:26:13 - Token Spending and Productivity 00:27:05 - AI Sycophancy in Professional Context 00:29:17 - Talent Competition and Market Dynamics 00:31:14 - Hiring Philosophy and Skills Evolution Watch Bloomberg Vodcasts: https://www.youtube.com/playlist?list=PLe4PRejZgr0MS0Tqk_zQl1LVVTdWuH2Di Watch more Odd Lots episodes: https://www.youtube.com/playlist?list=PLe4PRejZgr0OJbRzA6nWybYiThLJd_ouz Bloomberg's Joe Weisenthal and Tracy Alloway analyze the weird patterns, the complex issues and the newest market crazes. Join the conversation every Monday and Thursday for interviews with the most interesting minds in finance, economics and markets. Join the conversation: discord.gg/oddlots Subscribe to Bloomberg Podcasts: https://bit.ly/BloombergPodcasts Check out more Odd Lots: https://youtube.com/playlist?list=PLe4PRejZgr0MuA6M0zkZyy-99-qc87wKV Get the Odd Lots newsletter: https://www.bloomberg.com/account/newsletters/oddlots And for all things Odd Lots, visit https://www.bloomberg.com/oddlots #Investing #Markets #Finance #Bloomberg #Podcast #OddLots Visit us: https://www.bloomberg.com/podcasts For coverage on news, markets and more: http://www.bloomberg.com/video Visit our other YouTube channels: Bloomberg Television: https://www.youtube.com/@markets Bloomberg Originals: https://www.youtube.com/bloomberg