Asymmetry of risk: If any of the AI story breaks – capital spending slows down, model performance bottlenecks, regulatory tightening – the higher the concentration, the sharper the pullback. In a market where the yield of ten-year treasury bond is already higher than the stock earnings yield, why does it still refuse to call back despite soaring nearly 70% in oil prices this year, and the 10-year bond interest rate still remains near 5.24%?
Alex Gerko Using 25,000 mostly Nvidia AI chips and a supercomputer in Iceland, XTX competes ferociously in the business of market making — and reaps big rewards. the firm expanded into equities, commodities, and index derivatives, establishing itself as one of the largest electronic market-makers across asset classes. Its daily trading volumes soon reached hundreds of billions of dollars, spanning more than 35 countries. XTX’s core edge lay in forecasting and execution. Its models analyzed tens of thousands of instruments — spot currencies, futures, equities, ETFs, and options — updating probabilistic forecasts multiple times per second. The firm’s infrastructure evolved into one of the world’s most powerful private computing systems, comprising tens of thousands of GPUs and hundreds of pe
The French 10-year OAT yield rate climbed to 4.90%-4.92%, the highest since 2002. The interest rate spread between France and Germany over the 10-year period widened to between 131 and 149 basis points, just 110 basis points a week ago, and 12-month average was about 75 basis points.
At the peak of the dot-com bubble in 1999, Internet companies accounted for less than 40% of VC funds. Today's AI concentration has more than twice that of that year.