Ornn AI Unveils Groundbreaking Compute Price Index on Bloomberg Terminal

In a significant advancement for the AI infrastructure sector, Ornn AI Inc. has announced the launch of its Ornn Compute Price Index (OCPI) on the Bloomberg Terminal. This new index aims to standardize GPU pricing, facilitating a better understanding among investors and lenders about the costs associated with AI compute resources.

The introduction of OCPI marks a pivotal moment as it becomes the first ongoing benchmark designed to track GPU pricing, particularly at a time when capital deployment for AI-related data center infrastructure is spiking. With projections suggesting that an estimated $4 trillion will be invested globally in this arena by 2030, the need for transparent and reliable pricing mechanisms has never been more pressing. However, GPU pricing has historically been characterized by a lack of transparency, often being based on bilateral agreements which may not reflect the broader market realities.

Many organizations find themselves at a disadvantage, relying on outdated pricing assumptions which can inflate the cost of capital. There have been noticeable discrepancies between posted list prices and actual transaction amounts, leading to increased borrowing costs and hampered deployment efforts exactly when such investments are essential.

The Ornn Compute Price Index provides a much-needed solution by capturing the negotiated transaction levels between compute buyers and data centers, allowing for a clearer picture of the rental prices for various Nvidia GPU models such as the H100, A100, H200, B200, and RTX series. OCPI not only normalizes these prices across different hardware configurations and providers but also adjusts for deployment contexts.

As Wayne Nelms, Co-Founder and CTO of Ornn, aptly puts it, “Compute is becoming an infrastructure input that CFOs, lenders, and investors need to evaluate just as they would with electricity or natural gas.” The index ensures that pricing reflects actual market transactions, aiding better risk management and underwriting processes. This increases the reliability of financial assessments linked to computational resources.

During its first six months of operation, OCPI has successfully tracked pricing behaviors across both the Hopper and Blackwell generation chips, providing insight into how market dynamics and new hardware releases influence GPU prices. Currently, more than 400 data center operators, AI companies, and investors utilize the Ornn platform to monitor GPU pricing trends effectively.

Kush Bavaria, Co-Founder and CEO of Ornn, elaborates that “GPUs are not perfectly fungible, much like individual mortgages.” Various factors such as configuration, provider, and location influence pricing, making it essential to standardize these aspects within a benchmark framework. By doing so, compute exposure can be assessed in a manner comparable to the evolution of mortgage markets.

OCPI forms the foundation for Ornn’s broader vision of creating a robust pricing and risk management infrastructure within the AI compute market. By normalizing transaction data for key GPU models, the index serves as a vital reference point for what compute resources are worth, expressed in terms that financial entities and operators can confidently use for underwriting purposes. This includes the ability to model revenue, costs, and collateral assumptions over diverse timeframes, allowing for a more strategic approach to AI infrastructure investments.

Moreover, built upon this pricing layer, Ornn is advancing compute hedging contracts that empower parties to manage operational risks directly instead of relying on proxy exposures. By utilizing these contracts, data center operators and lenders can stabilize future revenue, while large compute buyers can hedge against fluctuating infrastructure costs.

Founded with the mission of innovating the pricing and risk infrastructure for the growing AI compute market, Ornn continues to play an instrumental role by publishing the OCPI and facilitating financial contracts that help various stakeholders manage cost exposures and guarantee residual values. Headquartered in New York, the company is poised to lead the transformation of the AI infrastructure landscape. For additional details, interested parties can visit www.ornn.com.