Hedging Credit Risk AI model with Ornn GPU Index

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As a leading proprietary trading and managed-infrastructure company, faced with significant exposure to volatile compute pricing that threatened our ability to offer predictable rates to customers. By partnering with Ornn to execute a structured compute swap, we locked in favorable economics on our GPU capacity, transforming unpredictable cost exposure into a fixed, manageable expense line. This transaction represents a landmark moment in the compute market, establishing a new paradigm for financial risk management in GPU infrastructure.

The Challenge

Building out our Credit Risk AI model with stern focus on supply chain and distribution, we knew we were going to run out of budget. Initially, the right data was hard to find, but quickly we realized that it’s not about the volume of data but it’s quality. Then like everyone else in the industry, geopolitics increases volatility in GPU prices. Do we need to break the bank for this - we thought that would be highly irrational. Supply chain margins are thin, coupled with the challenges of unpredictability as no two days are the same in supply chain. We also faced capital planning challenges where capacity expansion decisions became high-stakes gambles rather than calculated investments, and competitive disadvantage since larger players with diversified portfolios could absorb volatility while Huntrecht needed a more sophisticated approach.

The Ornn Solution

Ornn structured a three-month compute swap that allowed Huntrecht to exchange their floating-rate exposure for a fixed price, referenced against the Ornn GPU Index, the industry’s emerging benchmark for GPU compute pricing. The swap was cash-settled against the index, providing Huntrecht with complete price certainty for the contract period.

We infused this in our “Reserved GPU” cost structure computation. So, instead of applying breaks on AI model utilization due to cost spiraling, the Ornn Solution helps us stay within budget while offering our customers the best solution possible. - Huntrecht Leadership

Results and Impact

The compute swap delivered immediate benefits for Huntrecht. They achieved complete price certainty on compute capacity for the contract period, eliminating downside exposure to market volatility. This enabled enhanced sales capability to offer fixed-price contracts to enterprise customers, opening new revenue opportunities. We also saw improved capital efficiency through better forecasting and reduced need for precautionary reserves, along with strategic positioning as an early adopter of sophisticated financial infrastructure in the compute market.

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About Ornn

Ornn is building the financial infrastructure for the compute economy. As the creator of the Ornn GPU Index and a derivatives platform for compute resources, Ornn brings institutional-grade rigor to a market that has historically lacked sophisticated risk management tools. The team combines proprietary pricing data from leading GPU cloud providers, deep market expertise from backgrounds in quantitative trading and market structure, and bespoke structuring tailored to each client’s specific risk profile. Visit https://www.ornnai.com